Story updated at 9:50 a.m. to reflect market activity.
LyondellBasell gained 0.7% to $97.43 in morning trading.
The firm also raised its EPS estimates for LyondellBasell. Jefferies analysts said that catalysts include growth projects, productivity, shale oil, and $23 a share in cumulative FCF.
Separately, TheStreet Ratings team rates LYONDELLBASELL INDUSTRIES NV as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LYONDELLBASELL INDUSTRIES NV (LYB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.24% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LYONDELLBASELL INDUSTRIES NV has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LYONDELLBASELL INDUSTRIES NV increased its bottom line by earning $6.78 versus $4.97 in the prior year. This year, the market expects an improvement in earnings ($7.41 versus $6.78).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 4.9% when compared to the same quarter one year prior, going from $901.00 million to $945.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- You can view the full analysis from the report here: LYB Ratings Report