Wells Fargo Starts LyondellBasell Industries (LYB) at Outperform, Encouraging Growth
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Price: $65.07 -1.18%
Rating Summary:
11 Buy, 4 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
11 Buy, 4 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade LYB Now!
Wells Fargo initiates coverage on shares of LyondellBasell Industries (NYSE: LYB) with an Outperform rating and $38-$40 valuation range.
The firm believes that LYB is an efficient way to play the improved petrochemical industry as it has the leading market share across multiple commodities and is the third largest company in the industry by revenue.
The company's debt fell by $18 billion during its Chapter 11 stage and had liquidity of $7.1 billion by the end of Q2. Wells Fargo forecasts that LYB will be net cash by the end of the year.
LYB introduced its second quarter dividend at $0.10 and doubled it three months later. The firm notes that this is encouraging and is largely due to its strengthening balance sheet.
An analyst at Wells Fargo reports, "LYB's fundamentals have improved dramatically as a result of reorganization, an improved natural gas cost position, and continued rationalization and investment measures. We expect solid earnings through 2012. The discounted valuation and 2.6% dividend yield make the LYB story even more compelling, in our view."
Wells Fargo estimates EPS for 2011 and 2012 of $5.10 for both years and $52.36 billion and $54.5 billion in revenue for the two years.
For more ratings news on LyondellBasell Industries click here and for the rating history of LyondellBasell Industries click here.
Shares of LyondellBasell Industries closed at $31.42 yesterday, with a 52 week range of $24.45-$46.28.
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The firm believes that LYB is an efficient way to play the improved petrochemical industry as it has the leading market share across multiple commodities and is the third largest company in the industry by revenue.
The company's debt fell by $18 billion during its Chapter 11 stage and had liquidity of $7.1 billion by the end of Q2. Wells Fargo forecasts that LYB will be net cash by the end of the year.
LYB introduced its second quarter dividend at $0.10 and doubled it three months later. The firm notes that this is encouraging and is largely due to its strengthening balance sheet.
An analyst at Wells Fargo reports, "LYB's fundamentals have improved dramatically as a result of reorganization, an improved natural gas cost position, and continued rationalization and investment measures. We expect solid earnings through 2012. The discounted valuation and 2.6% dividend yield make the LYB story even more compelling, in our view."
Wells Fargo estimates EPS for 2011 and 2012 of $5.10 for both years and $52.36 billion and $54.5 billion in revenue for the two years.
For more ratings news on LyondellBasell Industries click here and for the rating history of LyondellBasell Industries click here.
Shares of LyondellBasell Industries closed at $31.42 yesterday, with a 52 week range of $24.45-$46.28.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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