UPDATE: Deutsche Bank Raises PT on LyondellBaseball Ahead of Investor Day Conference

In a report published by Deutsche Bank, analyst David Begleiter reiterated his Buy rating and $75 price target on LyondellBaseball LYB. Deutsche Bank reported that, “Lyondell's investor meeting exceeded expectations as management increased its target of add'l EBITDA in '16 from new capacity / improvement projects to $1.6-$2.0B from $1B previously. This includes an add'l 550MM lbs of ethylene capacity at Corpus Christi (for a total of 800MM lbs of new capacity at Corpus). With Corpus enjoying the lowest feedstock costs of any of Lyondell's crackers (due to low cost condensate from nearby Eagle Ford), this add'l capacity adds ~$200MM of EBITDA. With the add'l EBITDA increasing our confidence in Lyondell earning $10/shr in '16E, ethylene fundamentals robust, buybacks starting in May ($1.5B in '13E) and valuation an attractive 9.0x '14E EPS, Buy.” Shares of LyondellBaseball closed at $63.30 on Wednesday.