LyondellBasell (LYB) Downgraded by RBC Amid Polyethylene Oversupply Concerns

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Apr 09, 2025
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Key Highlights:

  • LyondellBasell Industries (LYB, Financial) downgraded by RBC Capital Markets amidst polyethylene surplus concerns.
  • Wall Street analysts offer an average price target of $78.67, signaling potential for future growth.
  • GuruFocus GF Value estimates a substantial upside for LYB, suggesting its stock may be undervalued.

LyondellBasell Industries NV (NYSE: LYB) has been under the spotlight following a downgrade by RBC Capital Markets. This revision stems from concerns over a burgeoning polyethylene surplus in the U.S., alongside declining profit margins due to global tariffs. Additionally, RBC has adjusted its earnings projections for LYB in 2025, factoring in potential challenges related to ongoing maintenance issues and weather-related disruptions.

Wall Street Analysts' Predictions

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Currently, insights from 21 analysts reveal a one-year average price target for LyondellBasell Industries NV at $78.67. This target spans a high estimate of $105.00 and a low of $51.00, suggesting a notable upside of 46.73% from its present trading price of $53.62. For those interested in exploring detailed estimate data, the LyondellBasell Industries NV (LYB, Financial) Forecast page offers further insights.

The consensus recommendation from 24 brokerage firms stands at an average brokerage recommendation of 2.9 for LYB, translating to a "Hold" rating. This rating is derived using a scale from 1 (Strong Buy) to 5 (Sell).

GuruFocus GF Value Insight

According to GuruFocus' projections, the estimated GF Value for LYB over the next year is pegged at $67.59. This valuation suggests an upside potential of 26.07% from its current share price of $53.615. The GF Value is GuruFocus' proprietary metric, reflecting the fair value a stock should trade at, calculated using historical trading multiples, past business growth, and forecasts of future business performance. For a comprehensive overview, visit the LyondellBasell Industries NV (LYB, Financial) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.