LSB Industries +8% as Barron's sees "huge upside"

LSB Industries (LXU +7.8%) is sharply higher following a weekend Barron's profile that sees activist investors' agitation for changes such as a spinoff or sale of the climate control unit and the creation of an MLP for the chemicals business sparking "huge upside" for the shares in the next year.

The actions could energize the fertilizer maker, which trades for a deep discount to the value of LXU's parts, says Avondale Partners' Daniel Mannes, who thinks shares could be worth $62-$73; he says the timing for such action is uncertain, but sees 15% upside in the shares in the next year even without major changes.

Business, meanwhile, is looking up: A ramp-up in production helped boost division sales by nearly 50% Y/Y in the March quarter, and the renovated Pryor facility reached targeted production in April.

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