LXU - LSB Industries jumps as Piper Sandler starts coverage with Overweight rating

LSB Industries ( NYSE: LXU ) on Tuesday jumped as much as 11% to $17.81, the highest level in three months, after Piper Sandler began coverage of the chemical maker with an Overweight rating. The bank set a 12-month price target of $26 a share, suggesting a gain of about 60% from the prior close.

LSB is on course to boost revenue by 80% to more than $1 billion in 2022, according Piper Sandler’s forecast. The bank estimates LSB’s EPS will be $2.77 this year and will rise to $3.43 in 2023.

“Global natural gas issues along with geopolitical and environmental circumstances have significantly curtailed production of nitrogen products, setting the stage for an extended period of pricing well above historical midcycle levels,” Charles Neivert, analyst at Piper Sandler, said in the Sept. 12 report. “We believe LXU is poised to outperform peers over the next 12 months.”

Seeking Alpha contributor Mare Evidence Lab has a Hold rating on LSB ( LXU ) because of comparisons with other chemical companies.

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