LyondellBasell Stock Reversal Potential Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy LYB?
Source: CNBC
- Stock Reversal Signs: LyondellBasell (LYB) closed at $75.20 on March 18, marking a significant rebound from previous lows, indicating a growing market expectation for improvement in its fundamentals despite ongoing market softness.
- Cash Flow Improvement Plan: The company's cash flow improvement plan is projected to deliver $800 million by 2025, exceeding targets, with a cumulative goal raised to $1.3 billion by the end of 2026, enhancing financial stability and investor confidence.
- Dividend Cut Impact: LYB halved its quarterly dividend to 69 cents per share in February, which may seem negative at first glance, but it effectively removed market uncertainty regarding dividend sustainability, allowing investors to focus more on business stabilization.
- Options Trading Strategy Adjustment: It is recommended to adjust the original 47.5/52.5/60 call spread risk reversal to a June 65/75/90 call spread risk reversal, reflecting the stock's upward potential and restored market sentiment while still guarding against downside risks.
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Analyst Views on LYB
Wall Street analysts forecast LYB stock price to fall
15 Analyst Rating
1 Buy
11 Hold
3 Sell
Hold
Current: 80.450
Low
36.00
Averages
47.29
High
57.00
Current: 80.450
Low
36.00
Averages
47.29
High
57.00
About LYB
LyondellBasell Industries N.V. is a global, independent chemical company creating solutions for everyday sustainable living. The Company's segments include Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Advanced Polymer Solutions (APS), and Technology. The O&P-Americas and O&P-EAI segments produces and markets olefins and co-products, polyethylene, and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), and acetyls. The APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors, and powders. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Holiday Product Cost Reevaluation: Krykun notes that with increasing orders for the 2026 Christmas season, costs for packaging projects have been recalculated, particularly as the rising prices of molded plastic trays will directly impact clients' production budgets.
- Petrochemical Supply Shock: Atsi Sheth, chief credit officer at Moody's, highlights that the petrochemical industry is facing a supply shock, with oversupply and insufficient demand leading to downgrades for producers, which is expected to exacerbate consumer price inflation, particularly affecting lower-income groups.
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides investors with valuable insights for technical analysis, aiding in market trend assessment and timing of investments.
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