Jefferies Comments on LyondellBasell Industries (LYB) Following Recent Investor Meeting

Jefferies is maintaining its Buy rating and $56 price target on shares of LyondellBasell Industries (NYSE: LYB) following a recent investor meeting with the company.

The company highlighted $1.70-$2.60 per shares in potential upside trough-to-peak improvement in ethylene margins. Favorable refining margins and $100-$200 million in near-term productivity initiatives all contribute to the company's peak EBITDA estimate of $7.8 billion, $8.15 EPS, with upside to north of $9 billion and a potential trough around $3 billion.

Opportunities in which LYB is looking towards to strengthen its story include "condo crackers" as a lower risk way to participate in ethylene capacity additions; PO/PG facilities to leverage LyondellBasell's technology advantage; return cash to shareholders at an accelerated rate in 2013-2015; maintain the pace of productivity investments; and expand the JV presence in the Middle East and Asia.

The firms current 2011, 2012, and 2013 EPS estimates are $4.65, $5.45, and $6.00.

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 $36.88 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies Starts LunR Royalties Corp (LUNR:CN) at Buy
• Jefferies Downgrades IDP Education (IEL:AU) (IDPUF) to Hold
• Jefferies Upgrades Fortescue Metals Group Ltd. (FMG:AU) (FSUGY) to Hold