LyondellBasell (LYB) Well Positioned for Peak in Ethylene Cycle

February 4, 2013 12:03 PM EST Send to a Friend
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Price: $79.26 +4.84%

Rating Summary:
    13 Buy, 5 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 43 | New: 52
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Imperial Capital today reiterated an Outperform rating on LyondellBasell Industries (NYSE: LYB) and raised its price target to $72.00 (from $62.00). In particular, analysts were bullish on the company's prospects in ethylene.

"Lyondell's operating margins should continue to expand as natural gas prices remain low relative to petroleum prices," said analyst Edward P. Mally. "With ethane at 5-year lows, we remain long the ethane chain and ethane feedstocks, which are likely to remain cheap relative to crude-based naphtha, in our view."

Mally noted that LyondellBasell plans to expand U.S. ethylene capacity, a move he views as well timed.

"We further highlight that plans of U.S. ethylene expansions, at LYB, of about 17-19% of current capacity are well timed, in our view, to capitalize on the peak of the ethylene cycle which we see occurring in 2015-2016," stated the analyst.

For an analyst ratings summary and ratings history on LyondellBasell Industries (NYSE: LYB) click here. For more ratings news on LyondellBasell Industries click here.

Shares of LyondellBasell Industries closed at $61.37 yesterday.


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