Jefferies Reiterates a 'Buy' on LyondellBasell Industries (LYB); Trimming Estimates on Potential Summer Destock

June 7, 2012 11:28 AM EDT Send to a Friend
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Price: $90.65 +0.10%

Rating Summary:
    12 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 14 | New: 51
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Jefferies reiterates a 'Buy' on LyondellBasell Industries (NYSE: LYB) price target of $52.00 (from $53.00).

Analyst, Laurence Alexander, said, "We are lowering 2012E EBITDA $300m to reflect a potential 2H12 de-stock cycle given the recent sharp decline in crude oil prices. We still view LyondellBasell as an attractive high-beta cyclical with limited balance sheet risk. At current levels (4.2% dividend yield), the risk/reward appears attractive in a summer pause scenario."

"We note that our "conservative" valuation framework pegs fair value at $39, which would suggest that further downward pressure on LyondellBasell shares could be short-lived." (FY12 EPS estimate cut from $4.95 to $4.60 and FY13 from $5.85 to $5.80)

For an analyst ratings summary and ratings history on LyondellBasell Industries click here. For more ratings news on LyondellBasell Industries click here.

Shares of LyondellBasell Industries closed at $38.44 yesterday.


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