Cautious Outlook for LyondellBasell Amid Market Uncertainties and Tariff Impacts

LyondellBasell (LYB – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst John McNulty from BMO Capital maintained a Hold rating on the stock and has a $65.00 price target.

John McNulty has given his Hold rating due to a combination of factors affecting LyondellBasell. The company reported a slight miss in its first-quarter earnings, with EBITDA coming in slightly below consensus and BMO expectations, although it was likely better than what the buyside anticipated. Management expects operational margins to improve from the first-quarter lows, but these gains may be offset by tariff-related impacts and other market uncertainties.
Despite the challenges, LyondellBasell’s dividend appears secure, with management expressing confidence in the company’s financial health and commitment to increasing dividends. However, the path to earnings stability and recovery remains uncertain, leading to a cautious outlook. The ongoing uncertainty in the petrochemical market, particularly related to tariffs and pricing pressures, continues to weigh on the company’s fundamentals, prompting the Hold rating.

In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $61.00 price target.