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

June 20, 2011 9:07 AM EDT
Get Alerts LYB Hot Sheet
Price: $102.28 -0.65%

Rating Summary:
    13 Buy, 17 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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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.


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