UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on LyondellBasell Industries

In a report published Friday, J.P. Morgan & Co. reiterated its Overweight rating on LyondellBasell Industries LYB, and slightly raised its price target from $56.00 to $57.00. J.P. Morgan & Co. “LyondellBasell has become an appreciably more valuable company. The company consistently generates roughly 10% of its share price in free cash flow and has a balance sheet with little financial leverage. We believe the share price performance of the petrochemical companies should improve as investors key on the consistency of cash flow and free cash flow generation in a weak global demand environment. The sources of outperformance are multiple. We believe that the market underestimates the magnitude of sustainable profitability of the North American ethylene companies given their low cost natural gas feedstock position relative to oil-based feedstock. We believe the market also underestimates the sustained profitability that can stem from strength in co-product values.” LyondellBasell Industries closed on Thursday at $48.74.