Nomura Securities Remains Sidelined on LyondellBasell Industries (LYB) Following 2Q - PT to $82

Nomura Securities reiterated a Neutral rating on LyondellBasell Industries (NYSE: LYB), and cut the price target to $82.00 (from $85.00), following the company's 2Q earnings report. LYB reported adjusted EPS of $2.45, below the consensus estimates of $2.51. Nomura cut 2016 EPS estimates by $0.24 to $9.25, but raise 2017 by $0.80 to $10.00 mostly due to a newly announced 10% buyback authorization.

Analyst Aleksey Yefremov commented, "LYB reported 2Q16 adj. EPS of $2.45A, mostly in-line with our $2.46E but below consensus of $2.51E. Weakness was driven mostly by lost volume due to outages in O&P Americas and Refining, which more than offset stronger ethylene margins. I&D also underperformed due to lower PO volumes and mix. In total, outages were a $140mn headwind in 2Q and expected to be $150mn in 3Q – meaningfully above our previous expectations. We believe a slight headline miss and negative implications of outages on 2H earnings were a driver in shares falling -4.9% after earnings (vs. S&P 500 +0.2%)."

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 $75.26 yesterday.

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