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What Analysts Recommend for LyondellBasell

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Analyst recommendations for LyondellBasell

As of May 25, 2017, 23 brokerage firms were actively tracking LyondellBasell (LYB) stock. About 30.0% of them have recommended a “buy” for the stock, and 61.0% have recommended a “hold.” The remaining 9.0% have recommended a “sell.”

Analysts’ consensus indicates a 12-month target price of $95.00 for LYB. That implies a return potential of 17.8% from its closing price of $80.67 as of May 25, 2017.

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Why most analysts are recommending a “hold”

LyondellBasell’s lower-than-expected 1Q17 earnings were due to charges on repayment of debt and scheduled maintenance. With the exception of scheduled maintenance in the second quarter in Europe and Asia, LYB will have a lower maintenance schedule. As a result, its productivity could go up. Thus, many analysts are recommending a “hold” on LYB.

Recommendations and targets by some well-known brokerage firms

Below are some of the recommended target prices for LyondellBasell from some well-known brokerage firms.

  • BOFA Merrill Lynch rated LyondellBaell an “underperform” with a target price of $80, which is marginally lower than the closing price of $80.67 as of May 25, 2017.
  • Barclays (BCS) rated LyondellBasell as “overweight” with a target price of $105, which implies a 12-month potential return of 30.5% over its closing price of $80.67 on May 25, 2017.
  • Deutsche Bank (DB) gave LyondellBasell a target price of $96, which implies a 12-month potential return of 19% over its closing price of $80.67 on May 25, 2017.
  • Goldman Sachs (GS) rated LyondellBasell a “neutral” with a target price of $98, which implies a 12-month potential return of 21.5% over its closing price of $80.67 on May 25, 2017.

You can indirectly hold LyondellBasell by investing in the iShares U.S. Basic Materials ETF (IYM), which invests 4.6% of its portfolio in LYB as of May 25, 2017.

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