UPDATE: Deutsche Bank Reiterates on LyondellBasell Industries NV Following Mixed Q1 Release

In a report published Wednesday, Deutsche Bank analyst David Begleiter reiterated a Buy rating on

, and raised the price target from $92.00 to $108.00. In the report, Deutsche Bank noted, “Lyondell had a mixed Q1 release. While EPS missed by $0.09, or 5%, the miss was due to transitory factors (cold weather related outages, weather-driven higher raw material costs, ethylene purchases/inventory build ahead of the La Porte expansion). Cumulatively, these items impacted Q1 by ~$0.35 (partially offset by price increases). Heading into Q2 these headwinds have dissipated. Coupled with solid demand trends, Q2 should be a strong quarter. While Lyondell once again downplayed the potential of an MLP for its US ethylene assets, with >1/2 of earnings levered to low cost NGLs, $9B+ of buybacks in '14-'15E, $10+ in EPS in '16E and valuation a fair 12.5x '14E EPS. Maintain Buy.” LyondellBasell Industries NV closed on Tuesday at $90.97.