Analyst recommendations for LyondellBasell
As of June 26, 2017, 24 analysts from different brokerage firms actively monitor LyondellBasell stock. Among them, 33% have recommended a “buy,” 58% have recommended a “hold,” while the remaining 9% have recommended a “sell.”
The latest analyst consensus indicates LYB’s 12-month target to be at $94.83, implying a potential return of 17.2% from the closing price of $80.89 as of June 26, 2017. The target price of analysts for LYB has come down to $94.83 as compared to $98.10 in April 2017.
Why analysts are suggesting a “hold” for LYB
Although LyondellBasell’s 1Q17 earnings missed analysts’ estimate, the positive developments like the announcement of a new share buyback program, new business wins, and new product launches are likely to benefit the shareholders. As a result, most analysts recommend a “hold” for LyondellBasell.
A glance into individual brokerage firms’ recommendations and targets
Below are some of the recommended target prices for LyondellBasell by individual brokerage firms:
- HSBC (HSBC) rated LyondellBasell as “buy” with a target price of $101, implying a 12-month potential return of 24.9% over its closing price of $80.89 on June 26, 2017.
- BOFA Merrill has cut LyondellBasell to “underperform” from “buy” with a target price of $80. As of June 26, 2017, LYB closed at $80.89, which is above the target price.
- Evercore rated LyondellBasell as a “buy” with a target price of $109, which implies a 12-month potential return of 34.8% over its closing price of $80.89 on June 26, 2017.
Investors can invest in the ProShares Ultra Basic Materials (UYM) and hold LYB indirectly. UYM has invested 3.0% of its portfolio in LYB. The top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), which have weights of 8.1%, 8.0%, and 5.9%, respectively.