UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on LyondellBasell Industries
In a report published Monday, Morgan Stanley reiterated its Overweight rating on LyondellBasell Industries (NYSE: LYB), and slightly raised its price target from $53.00 to $54.00.
Morgan Stanley noted, “Ethane costs are near record lows, and although we conservatively forecast higher levels in 2H12, we continue to believe that the US ethane market will be oversupplied in 2013 and beyond, leading to a sustained period of elevated cash flows, the vast majority of which likely will be returned to shareholders in one form or another. Further, capacity utilization is likely to breach 90% in 2014 which would further improve cash flow.”
LyondellBasell Industries closed on Friday at $44.51.
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