Deutsche Bank Reiterates Buy, $40 Target on LyondellBasell
Deutsche Bank maintains its Buy rating and $40 target price on LyondellBasell Industries (NYSE: LYB) on attractive 3.7x EBITDA valuation.
Deutsche Bank says, “Lyondell's investor meeting exceeded expectations with $3.5-$5B of EBITDA targeted by 2016 (vs LTM EBITDA of $5.5B) from high return operational/financial improvements, quick payback debottlenecks, expansions, restarts, JVs and upside from industry trends (ethylene cycle, US ethane advantage). Most noteworthy, Lyondell has decided not to build a greenfield ethylene cracker in the US but rather take advantage of the US ethane advantage thru lower cost and quicker-to-market brownfield expansions.”
LYB closed at $32.82 per share on Thursday.
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