Citigroup Reiterates Buy, $40 on LyondellBasell

Citigroup maintains its Buy rating and $40 target price on LyondellBasell Industries LYB as brownfield expansion is expected to contribute growth. Citi says, “LYB's assets are now well-maintained and have been rejuvenated by the “shale supremacy” in the US. However, there are still many brownfield opportunities remaining. Management identified operational and financial improvements worth $700-$900mm of incremental pretax earnings by 2013. Longer-term, LYB identified $800mm-$1B of high-return growth opportunities by 2016.” LYB closed at $32.62 per share on Thursday.