PSXP - Why Units of Phillips 66 Partners Rallied 10% in December
Units of Phillips 66 Partners (NYSE: PSXP) rose 10.6% in December, according to data provided by S&P Global Market Intelligence. The main factor driving up the energy company's value last month was some positive commentary from an analyst.
RBC Capital raised its price target on Phillips 66 Partners from $62 to $65 per unit -- implying about 3% of additional upside from the current price -- while maintaining its outperform rating. Driving the higher valuation is the view that the MLP is "well-positioned to generate highly visible cash flow growth" thanks to its "slate of organic growth projects." The company, for example, just started up its Gray Oak Oil pipeline, which, along with a couple other projects, should fuel healthy cash flow growth in 2020.
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