Phillips 66 Partners (PSXP) PT Raised to $41 at Mizuho Securities

Mizuho Securities analyst Gabriel Moreen raised the price target on Phillips 66 Partners (NYSE: PSXP) to $41.00 while maintaining a Neutral rating.

The analyst commented, "This morning, PSX (Silvio Micheloto, $100PT, Buy) announced it would acquire all outstanding PSXP common units not already owned by PSX. The initial offer contemplates a 0.5x exchange ratio wherein PSXP unit holders will receive 0.5 shares of PSX for every PSXP unit held - amounting to a ~5% premium to PSXP's October 26 closing price. We had written at length about the high probability of a near-term fold-in (click ~HERE~) citing a lack of investable Midstream opportunities, absence of valuation arbitrage, and foreshadowing in PSX's recent Schedule-13/D filing as justification for our outlook. Owning ~74% of units outstanding, PSX does not have much incentive to revise its initial offer. Raise PT to $41."

You May Also Be Interested In

• Kepler Cheuvreux Downgrades Telecom Italia SpA (TIT:IM) (TI) to Hold
• JPMorgan Downgrades Wipro Ltd. (WPRO:IN) (WIT) to Underweight
• JPMorgan Downgrades HCL Technologies (HCLT:IN) to Underweight