Deutsche Bank Maintains Buy On Lyondellbasell Industries, $113 PT


In a research report issued today, Deutsche Bank analyst David Begleiter maintained a Buy rating on Lyondellbasell Industries (NYSE:LYB) with a price target of $113.

Begleiter noted, “Lyondell shares fell 2% post a solid Q3 beat of $0.22, or 10%, on record O&P Americas results (EBITDA +43% YoY to $1.2B) as lower oil prices (down 1% Friday) continue to pressure the shares (down 19% over the past 5 weeks). While lower oil prices will pressure Lyondell’s US ethylene margins the impact i) will not be felt near-term as positive trends continue in Q4 (i.e. ethane is at yearly lows, ethylene pricing at yearly highs and supply/demand is tight and ii) when they do pressure margins, we believe the impact will be modest as evidenced by our lowered ‘16E from $11.00 to $10.25. With, >1/2 of earnings levered to low cost US NGLs, and valuation an attractive 10.0x ‘15E EPS.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst David Begleiter has a total average return of 7.0% and a 69.4% success rate. Begleiter has a 18.9% average return when recommending LYB, and is ranked #524 out of 3347 analysts.

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