UPDATE: Stifel Starts LSB Industries (LXU) at Buy

Stifel analyst Vincent Anderson initiates coverage on LSB Industries (NYSE: LXU) with a Buy rating and a price target of $23.00.

The analyst comments "We are initiating coverage of LSB Industries with a Buy rating and $23 target price. While we expect nitrogen markets to normalize over the next 1-2 years, we see a 'new normal' level given limited planned capacity additions relative to China's unwillingness to resume its 'swing producer' status, and significant disruptions to Eastern European capacity following the invasion of Ukraine. For LSB, the strong pricing environment follows a period of significant operational improvement, which now affords a reliable production base to reinvest capital into high return organic growth projects. Given the company's smaller size relative to leading market participants, as well as a more industrial vs. agriculture weighted product mix, we expect these organic growth opportunities to carry higher value to investors. Coupled with a tactical upside in nitrogen markets as Europe enters the winter with tenuous gas availability, we see a strong outlook for LXU shares."

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

Shares of LSB Industries closed at $17.04 yesterday.

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