Barclays Maintains an 'Overweight' on LyondellBasell Industries (LYB); Performance Trumps N-T Commodity Softness; Remains our Top Idea

Barclays maintains an 'Overweight' on LyondellBasell Industries (NYSE: LYB) price target of $43.00.

Barclays analyst says, "We spent a day with LYB in Houston last week and walked away even more convinced that LYB is the most attractive stock in our universe. We believe LYB has 1) a low starting point and focused management, meaning more ground on cost cutting vs. peers; 2) a simple strategy we really like, "Be the best commodity chemical company in the world"; and 3) the highest probability of returning the most cash flow to shareholders via buybacks and dividends. We expect normal dividend yield will rise over the next 18 months to the higher end of the chemical sector (3-4% yield) bringing in a whole new category of shareholders."

"While Q3 was a record, we believe sequential trends will be challenging in Q4 and 1H 2012. Olefin margins globally have declined in recent weeks leading to reduced earnings in our forecast for Q4 through Q2 2012. We have reduced our Q4'11 EPS from $0.98 to $0.90 and our '12E EPS from $4.95 to $4.75."

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 $36.08 yesterday.

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