With a market cap of $31.56 billion, LyondellBasell Industries N.V. (LYB) is a global chemical company headquartered in Houston, Texas. Specializing in producing and distributing plastics, chemicals, and refining products, LyondellBasell serves a broad range of industries, including packaging, automotive, and construction. The company’s innovative solutions in polymer and chemical production help drive advancements in sustainability and efficiency, meeting the diverse needs of its global customer base.
LYB has significantly underperformed the broader market over the last year. The stock has declined 1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.8%. In 2024, the stock has gained 1.9%, compared to SPX's 17.8% gains on a YTD basis.
Narrowing the focus, LYB underperformed the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained 3.7% on a YTD basis.
On Aug. 2, LYB reported Q2 results. Its sales and other operating revenues gained 2.4% year over year to $10.56 billion. The company’s adjusted net income grew 29.2% year over year to $924 million, and its adjusted EPS stood at $2.82, representing an increase of 29.4% year over year. LYB shares declined more than 3.8% on the day of the results.
For the current fiscal year, ending in December, analysts expect LYB’s EPS to decline 6.2% to $8.11 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 19 analysts covering LYB stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, two “Moderate Buys,” 10 “Holds,” and two “Strong Sells.”
On Aug. 6, Vincent Andrews from Morgan Stanley maintained a “Buy” rating on LyondellBasell, with a price target of $110, which indicates a 13.5% upside from the current levels.
The mean price target of $104.70 represents an 8% premium to LYB’s current price levels. The Street-high price target of $119 suggests an upside potential of 22.8%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
