LSB Industries initiated with a Buy at Jefferies

Jefferies analyst Laurence Alexander initiated coverage of LSB Industries with a Buy rating and $20 price target. Tight supply/demand balances in ammonia "appear well understood," but could still drive "fly-ups" in free cash flow and enable additional buybacks for the company, Alexander tells investors in a research note. The analyst adds that longer-term, the energy transition appears likely to introduce new arbitrages favorable for ammonia prices. LSB produces ammonia and ammonia derivatives for agricultural, industrial and mining applications, he notes.