Story updated at 9:55 a.m. to reflect market activity.
Shares of LyondellBasell fell -0.3% to $109.29 in morning trading.
The analyst firm also raised its EPS estimates for the company through 2016. The higher estimates and price target reflect LyondellBasell's buybacks. Jefferies analysts also cited growth projects, productivity, and shale oil as support the company's shares.
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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. 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:
- LYB's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, LYONDELLBASELL INDUSTRIES NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 38.75% and other important driving factors, this stock has surged by 57.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 38.8% 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 ($7.50 versus $6.78).
- You can view the full analysis from the report here: LYB Ratings Report
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.