Jefferies starts LSB Industries coverage with buy, sees better cash flow

LSB Industries

30/11/2022 13:42

** Jefferies initiates coverage of chemical products
manufacturer LSB Industries Inc.  LXU.N  with "buy" rating; PT
$20
    ** Brokerage says tight supply-demand conditions could grow
free cash flow and enable buybacks
    ** Says in the long term, transition to renewable energy
will be favorable for ammonia prices
    ** LXU makes ammonia and ammonia derivatives for industrial,
agricultural and mining industries
    ** LSB is participating in the first wave of renewable
hydrogen, with plans to convert 40%-50% of its production to
green or blue ammonia by 2026 - Jefferies
    ** 6 of 7 brokerages rate the stock "buy" or higher, 1
"hold"; their median PT is $21
 (Reporting by Priyadarshini Basu)
 ((priyadarshini.basu@thomsonreuters.com))