Corporate Spin-offs as Investment Opportunities: Corporate spin-offs have consistently outperformed the market over the past 30 years, with studies showing they deliver average excess returns of 3% on ex-dates and outperform the overall market by 10% in their first three years of independence.
Mechanics of Spin-offs: Investors often sell spin-off shares indiscriminately, creating opportunities for those who recognize the potential value in these newly independent companies, which can thrive without the constraints of their parent organizations.
Successful Spin-off Examples: Notable spin-offs like Yum Brands, Chipotle, and AbbVie have demonstrated significant returns, with Yum delivering a 1,600% return since its spin-off and Chipotle rising from $22 to $1,592 per share.
Current Trends and Future Potential: The spin-off market is evolving, with larger and more impactful separations occurring, driven by activist investors and a focus on unlocking value. Despite recent trends suggesting some spin-offs may be defensive moves, opportunities for outsized returns still exist for diligent investors.
Wall Street analysts forecast PSX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSX is 132.40 USD with a low forecast of 110.00 USD and a high forecast of 162.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast PSX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSX is 132.40 USD with a low forecast of 110.00 USD and a high forecast of 162.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 141.930
Low
110.00
Averages
132.40
High
162.00
Current: 141.930
Low
110.00
Averages
132.40
High
162.00
Scotiabank
Paul Cheng
Sector Perform
maintain
$133 -> $140
2026-01-16
Reason
Scotiabank
Paul Cheng
Price Target
$133 -> $140
AI Analysis
2026-01-16
maintain
Sector Perform
Reason
Scotiabank analyst Paul Cheng raised the firm's price target on Phillips 66 to $140 from $133 and keeps a Sector Perform rating on the shares. The firm is updating its price targets for U.S. Integrated Oil, Refining, and Large Cap Exploration & Production, E&P, stocks under its coverage, the analyst tells investors. Scotiabank expects earnings for the quarter to be straightforward due to the absence of major winter weather disruptions. Additionally, looking ahead, the firm expects investors to focus on whether recent market turmoil will cause changes to 2026 guidance and if any E&P companies will adopt cost reduction programs.
Piper Sandler
Ryan Todd
Neutral
downgrade
$171 -> $155
2026-01-08
Reason
Piper Sandler
Ryan Todd
Price Target
$171 -> $155
2026-01-08
downgrade
Neutral
Reason
Piper Sandler analyst Ryan Todd lowered the firm's price target on Phillips 66 to $155 from $171 and keeps a Neutral rating on the shares. The firm says that entering 2026, while the chairs have shuffled around a bit, the song remains similar to twelve months ago - a bearish crude outlook that is likely to make it difficult for the sector to outperform the broader market. On the flip side, Piper sees the refining market as even better than 2025, driven by what it expects to be incrementally tighter S/D and crude differential tailwinds.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for PSX
Unlock Now
Freedom Capital
Sergey Pigarev
Hold -> Sell
downgrade
$138
2026-01-06
Reason
Freedom Capital
Sergey Pigarev
Price Target
$138
2026-01-06
downgrade
Hold -> Sell
Reason
Freedom Capital analyst Sergey Pigarev downgraded Phillips 66 to Sell from Hold with a $138 price target. The "euphoria" in the U.S. oil and gas sector triggered by the U.S. operation in Venezuela is "unjustified," contends the analyst, who calls rising oil and gas equities amid declining oil prices "a dangerous game for investors." The sharp rally in U.S. oil and gas stocks over recent months shows little regard for the sector's negative fundamental backdrop, marked by falling oil prices and an oversupplied market, the analyst argues.
Mizuho
Neutral
maintain
$145 -> $150
2025-12-12
Reason
Mizuho
Price Target
$145 -> $150
2025-12-12
maintain
Neutral
Reason
Mizuho raised the firm's price target on Phillips 66 to $150 from $145 and keeps a Neutral rating on the shares. The firm adjusted ratings and targets in the exploration and production group as part of its 2026 outlook. While sentiment for U.S. oil and gas names is negative on oil market oversupply and high gas storage, there is "underappreciated value" in the group, particularly in exploration and production on longer-term fundamentals that could start becoming realized in 2026, the analyst tells investors in a research note. Mizuho suggests a reallocation of risk toward oil E&Ps with a selective bias in gas stocks. It turned more neutral on refining.
About PSX
Phillips 66 is a diversified and integrated downstream energy provider that manufactures, transports and markets products. The Company's Midstream segment provides crude oil and refined petroleum product transportation, terminating and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services. Its Chemicals segment consists of its 50% equity investment in Chevron Phillips Chemical Company LLC, which manufactures and markets petrochemicals and plastics on a worldwide basis. Its Refining segment refines crude oil and other feedstocks into petroleum products, such as gasoline, distillates, including aviation fuels. Its Marketing and Specialties segment purchases for resale and markets refined products, mainly in the United States and Europe. Its Renewable Fuels segment processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex and at its Humber Refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
