Analysts’ consensus on LyondellBasell

Most investors use analysts’ views and guidance to track stock movement. Currently, 21 analysts are actively tracking LyondellBasell (LYB) stock compared to 22 analysts in the second quarter. Among the analysts, 19% recommended a “buy,” 76% recommended a “hold,” and 5% recommended a “sell” for LyondellBasell.

LyondellBasell: Analysts’ Recommendations

Analysts’ consensus on LyondellBasell indicates a target price of $114.60, which implies a return potential of 28.5% over the closing price of October 25. Analysts’ consensus on LyondellBasell’s target price has been revised marginally downwards in the past three months.

LyondellBasell completed the acquisition of A. Schulman during the quarter. LyondellBasell is also in talks with Braskem. The company gained several new clients to provide licenses of its HDPE, PP, and PE technologies. However, many analysts were concerned about the increased feedstock price which might hamper LyondellBasell’s margins. As a result, most of the analysts’ have recommended the stock as a “hold.”

Individual analysts’ recommendations

  • Nomura (NOM) has cut its target price on LyondellBasell to $113 from $118, which implies a potential return of 32.3% over its closing price of $89.20 as of October 25.
  • Barclays (BCS) has rated LyondellBasell as “overweight.” Barclays cut the target price to $130 from $135, which implies a potential return of 45.7% over its closing price as of October 25.
  • UBS (UBS) lowered LyondellBasell’s target price to $111 from $117, which implies a return potential of 24.4% over the closing price of October 25.

Investors could invest in the Invesco S&P 500 Equal Weight Materials ETF (RTM) to hold LyondellBasell indirectly. RTM has invested 4.0% of its portfolio in LyondellBasell as of October 25.

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