NEW YORK, May 6 (Reuters) - Phillips 66, which was spun off recently from ConocoPhillips, has been undervalued by investors, and could see its shares climb 30 percent or more, Barron’s wrote in its May 7 edition.
Investors have overlooked the potential of its chemical and transportation businesses, the financial weekly said, adding that the company should benefit from the boom in U.S. energy production.
“Phillips is being valued like a refiner when it gets 40 percent of its earnings from high-return chemical and midstream businesses,” Doug Terreson, the ISI Group’s energy analyst, told Barron‘s. He has a “buy” rating and a $44 price target on Phillips.
The company’s shares closed at $30.16 on Friday on the New York Stock Exchange. (Reporting By Dhanya Skariachan; Editing by Marguerita Choy)