Jefferies Raises Price Target on LyondellBasell Industries (LYB) Following Strong Q3 Results
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Price: $100.55 -0.04%
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Jefferies is reaffirming its Buy rating on shares of LyondellBasell Industries (NYSE: LYB) and is raising its price target from $39 to $42 following strong Q3 results.
The company released its Q3 results with ESP of $0.33 as EBITDA topped the firm's estimate by $415 million. The firm highlights that Olefins & Polyolefins Americas profits were $0.19 better than expected, International $0.08, Refining & Oxyfuels $0.27, Intermediates & Derivatives $0.04, and Other $0.04; while Technology was the only miss at $0.04 below their forecast. Overall, net segment results were $0.58 better than Jefferies expected.
The firm reports upside was largely driven by $40-$50 million from Conway advantage, $235 million in R&O, and sourcing condensates from Eagleford shale
production, which last over the next 2-3 quarters.
To go inline with management's performance and the markets outlook, Jefferies is raising its FY11 and FY12 EPS estimates from $4.70 and $3.60 to $5.05 and $3.70. For FY13, the firm forecasts EPS of $5.60.
An analyst at Jefferies comments, "Q3's large beat highlighted LyondellBasell's ability to out-earn industry benchmarks and deliver robust cash flow: in Q3 alone LYB generated $1.3 billion in FCF, 6.5 percent of its EV. While there will likely be pressure on consensus estimates for 2012, even on a conservative framework the valuation appears compelling, with 20 percent+ potential upside over the next 9-12 months."
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 $34.50 yesterday.
The company released its Q3 results with ESP of $0.33 as EBITDA topped the firm's estimate by $415 million. The firm highlights that Olefins & Polyolefins Americas profits were $0.19 better than expected, International $0.08, Refining & Oxyfuels $0.27, Intermediates & Derivatives $0.04, and Other $0.04; while Technology was the only miss at $0.04 below their forecast. Overall, net segment results were $0.58 better than Jefferies expected.
The firm reports upside was largely driven by $40-$50 million from Conway advantage, $235 million in R&O, and sourcing condensates from Eagleford shale
production, which last over the next 2-3 quarters.
To go inline with management's performance and the markets outlook, Jefferies is raising its FY11 and FY12 EPS estimates from $4.70 and $3.60 to $5.05 and $3.70. For FY13, the firm forecasts EPS of $5.60.
An analyst at Jefferies comments, "Q3's large beat highlighted LyondellBasell's ability to out-earn industry benchmarks and deliver robust cash flow: in Q3 alone LYB generated $1.3 billion in FCF, 6.5 percent of its EV. While there will likely be pressure on consensus estimates for 2012, even on a conservative framework the valuation appears compelling, with 20 percent+ potential upside over the next 9-12 months."
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 $34.50 yesterday.
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