A number of stock research firms have changed their ratings and price targets for LyondellBasell (NYSE: LYB) during the last seven days:

  • LyondellBasell had its price target raised by analysts at Imperial Capital from $54.00 to $62.00. They now have an “outperform” rating on the stock. They wrote, “We are raising our one-year price target to $62, from $54 previously, and maintaining our Outperform rating on the shares at a price of $54.33 (as of 10/19/12),equal to 6.2x LTM EBITDA, 5.9x our 2012 EBITDA estimate of $5.7bn, and 5.5x our 2013 EBITDA estimate of $5.8bn, using our 2013 year-end estimate of zero net debt. Select equity comparables currently trade at about a mean of about 5.6x consensus 2013E EBITDA and 5.3x consensus 2014E EBITDA. Our $62 price target is based on 10.8x our 2013E EPS of $5.72 and 6.2x our 2013E EBITDA of $5,764mn, a 0.6 turn premium to the mean forward EBITDA valuation of the comparables we analyze, and some 14.1% above the closing price of $54.33 on 10/19/12. We are maintaining our BUY rating on the 8.10% senior notes and see a potential one-year total rate of return (TROR) of about 16.5%.At a recent price of 137.5 (4.53% YTM; +277bp vs. the benchmark 10-year treasury), we think that the 8.10s have the potential to generate a total rate of return (TROR) of about 16.6% over the next year, based on our expectation for potential spread tightening to +150bp (a price of about 152.2), a yield spread about 40bp wide to where Baa3/BBB rated Dow Chemical 4.125s (11/15/21) currently trade. The 8.10s are non-callable, except at a make-whole price equal to T+12.5bp (currently about 173, we estimate).”
  • LyondellBasell had its price target raised by analysts at JPMorgan Chase to $56.00. They wrote, “We raised our EPS estimates for LyondellBasell from $5.10 to $5.30 for 2012 to reflect good domestic 4Q:12 demand and wide ethylene margin spreads. Our 4Q:12 estimate is $1.21 versus the Consensus of $1.05. We lifted our 2013 EPS projection from $5.30 to $5.60 to reflect wider ethylene margins, given higher oil prices and lower ethane values, wider refinery crack spreads, and some normalization of European olefin returns. LyondellBasell continues to pursue good return on capital strategies and is maintaining a strong operational focus.”
  • LyondellBasell had its price target raised by analysts at Piper Jaffray to $56.00. They wrote, “While we are maintaining our FY13E EPS at $5.50, we are lifting our 4Q12 estimate to $0.96 on lower interest expense. Our valuation multiple expansion (from 4.7x) is largely due to special dividends that investors have come to expect. Management highlighted on the call that the special dividend this quarter ($2.75) is substantially smaller than its predecessor ($4.50), largely due to management’s caution about the macro environment.”
  • LyondellBasell had its price target raised by analysts at Deutsche Bank from $55.00 to $60.00. They now have a “buy” rating on the stock. They wrote, “Secular feedstock advantage underpins shareholder remuneration. Buy. Lyondell shares rose 1% post its Q3 release as management’s adamancy for shareholder remuneration (thru smaller but more frequent special dividends {vs $2.75 in ’12 & $4.50 in ’11} and future buybacks) remained steadfast and assuaged concerns over a modest Q3 EPS miss. While European olefins will remain weak thru y/e owing to poor demand and high naphtha costs, with >1/2 of earnings levered to low cost US NGLs, L-T prospects are robust as ethane is poised to remain cheap amid new pipeline and frac capacity in ’13. With sustainable cash generation pointing to continued shareholder remuneration in ’13 and valuation attractive at 9.1x ’13E EPS, we reiterate our Buy.”
  • LyondellBasell had its price target raised by analysts at Bank of America to $58.00. They wrote, “We view LYB as well positioned to benefit from inexpensive, natural gas-linked ethane feedstock, greater feedstock flexibility, and operational improvements. Our constructive posture is based on attractive, sustainable margins in ethylene over the medium term, and structural tightness in propylene and derivatives. … Our PO of $58 suggests shares can appreciate to 10.3x our 2013 EPS estimate of $5.60, which implies upside potential of 11% including a dividend yield 3.0%.”

LyondellBasell opened at 53.39 on Thursday. LyondellBasell has a 52-week low of $28.29 and a 52-week high of $53.77. The company has a market cap of $30.709 billion and a price-to-earnings ratio of 15.41.

LyondellBasell Industries N.V. is an independent chemical company. The Company’s chemicals businesses consist of processing plants that convert volumes of liquid and gaseous hydrocarbon feedstock into plastic resins and other chemicals.