BofA Downgrades LyondellBasell to Underperform Amid Cautious Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Source: seekingalpha
- Rating Downgrade Impact: Bank of America downgraded LyondellBasell from Neutral to Underperform, arguing that the recent stock price increase driven by geopolitical factors is already reflected in current valuations, indicating a cautious outlook on future profitability.
- Earnings Forecast Increase: Despite the downgrade, BofA raised its earnings forecasts for 2026-2028, expecting a significant increase in EBITDA for 2026, reflecting stronger product margins and elevated energy prices.
- Valuation Concerns: The report highlights that current stock prices already discount 'peak' earnings conditions, urging investors to be wary of the sustainability of profitability, especially as geopolitical effects fade and supply-demand balances normalize.
- Oversupply Risk: BofA warns of a potential re-emergence of oversupply risks in petrochemical markets if capacity closures do not materialize, as low global utilization rates and significant capacity additions, particularly in polyethylene, could pressure margins in the coming years.
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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: 67.670
Low
36.00
Averages
47.29
High
57.00
Current: 67.670
Low
36.00
Averages
47.29
High
57.00
About LYB
LyondellBasell Industries N.V. is an independent chemical company creating solutions for everyday sustainable living. The Company's segments include Olefins and Polyolefins-Americas (O&P-Americas), Intermediates and Derivatives (I&D), Advanced Polymer Solutions (APS), and Technology. The O&P-Americas segment 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, and colors. 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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- Dividend Yield: The forward yield of 3.94% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock, especially amid rising interest rates.
- Shareholder Payment Schedule: The dividend will be payable on June 8, with a record date of June 1 and an ex-dividend date also on June 1, ensuring shareholders receive timely returns and further solidifying trust between the company and its investors.
- Industry Performance: LyondellBasell leads foreign materials stocks in Quant ratings, ranking first among 13 materials stocks, indicating its competitive edge and market recognition, which may attract more institutional investor interest.
See More
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- Sustainability Commitment: As a leader in the global chemical industry, LyondellBasell is committed to advancing a circular and low-carbon economy through innovative technologies and focused investments, showcasing its leadership in sustainable living solutions.
- Market Position: LyondellBasell is one of the world's largest producers of polymers, focusing on the development and marketing of polyolefin technologies, providing high-quality and innovative products for applications in sustainable transportation, food safety, clean water, and quality healthcare.
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