Goldman Sachs Lifts Numbers On LyondellBasell (LYB) Despite Q4 Miss, Sees Much Better Margins
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Price: $67.53 -0.84%
Rating Summary:
14 Buy, 15 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 15 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs raised estimates and its price target on Buy-rated LyondellBasell Industries (NYSE: LYB) from $47 to $54 despite the 4Q11 earnings miss.
The firm views the weak 4Q2011 results as backward-looking given the much better margin profile thus far in 1Q2012. At this point, ethylene margins using the January contract price and spot ethane prices are $0.34/lb on the US Gulf Coast and $0.47/lb in the US Mid-west versus a 4Q2011 average of $0.18/lb.
Goldman reiterated their Buy rating and sees near-term catalysts like inventory restocking, margin support from restocking, improving refining margins. They see medium-term catalysts like additional ethane supply, S&P 500 index inclusion, additional earnings from expansion projects, eventual recovery in European volumes/margins, return of excess cash to holders.
The firm raised 2012/2013 EPS estimates to $5.30/$6.17 from $5.12/$6.00.
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 $44.75 yesterday.
The firm views the weak 4Q2011 results as backward-looking given the much better margin profile thus far in 1Q2012. At this point, ethylene margins using the January contract price and spot ethane prices are $0.34/lb on the US Gulf Coast and $0.47/lb in the US Mid-west versus a 4Q2011 average of $0.18/lb.
Goldman reiterated their Buy rating and sees near-term catalysts like inventory restocking, margin support from restocking, improving refining margins. They see medium-term catalysts like additional ethane supply, S&P 500 index inclusion, additional earnings from expansion projects, eventual recovery in European volumes/margins, return of excess cash to holders.
The firm raised 2012/2013 EPS estimates to $5.30/$6.17 from $5.12/$6.00.
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 $44.75 yesterday.
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