Wall Street’s ratings
So far in this series, we have discussed LYB’s business segments and important financial metrics. Now, it’s time to gauge the market sentiment for LYB. LYB’s stock rallied year-to-date in 2015. Is LYB still a favorite among Wall Street analysts?
Wall Street ratings
After Eastman (EMN), LYB is the second favorite chemical company among Wall Street analysts, as it has the second highest percentage of “buy” recommendations at 54%. Eastman has the highest percentage of “buy” recommendations at 65%. Nobody has recommended a “sell” for LYB, but 15% of analysts recommended a “sell” for EMN.
DuPont (DD) has the lowest percentage of “buy” recommendations at 33% and the highest “sell” recommendations at 63%. Dow Chemical (DOW) received “buy” recommendations from 50% of analysts and “sell” recommendations from 42% of analysts. Another LYB peer, Westlake Chemical (WLK), received “buy” recommendations from 38% of analysts and sell recommendations from 46% of analysts.
Target price and potential upside
LYB has a target price of $106.6 with the potential upside of 12% at a current price of $95.2. DOW, its closest peer, has the potential upside of only 6% while DD has a downside of 4%. EMN and WLK, both relatively small players, have high potential upsides of 22% and 14%, respectively. Despite a 20% rally in LYB’s stock, LyondellBasell has an upside of 12% and more than 50% of analysts have recommended a “buy” for LYB.
The Materials Select Sector SPDR (XLB) ETF invests majorly in the North American chemical players. The combined holdings of DD, DOW, and LYB make up 28.8% of XLB’s total holdings.