Jefferies analyst Christopher Sighinolfi downgraded both EnLink Midstream (ENLC) and Phillips 66 (PSX) to Hold from Buy. With a sharp year-to-date rally in midstream equity prices, stock selection is increasingly important, Sighinolfi tells investors in a research note. Despite an over 35% rise in crude prices year-to-date, U.S. energy fundamentals "remained muted" in Q1 as commodity prices declined, basis spreads further contracted and U.S. producers scaled back capital investment plans, says the analyst. He cites valuation for the two downgrades.

Barclays analyst Theresa Chen raised the firm's price target on Phillips 66 to $155 from $139 and keeps an Equal Weight rating on the shares. The analyst increased the price target after exploring the impacts and opportunities of an evolving infrastructure landscape for midstream and downstream operators "amid a dynamic price backdrop."