In a report released yesterday, Salvator Tiano from Bank of America Securities reiterated a Hold rating on LyondellBasell, with a price target of $55.00.
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Salvator Tiano has given his Hold rating due to a combination of factors influencing LyondellBasell’s current financial performance and future outlook. The company’s second-quarter adjusted EBITDA fell short of expectations, reflecting broader industry challenges, but the Americas Polyolefins business showed resilience by meeting estimates. This suggests potential stability in the near term, despite underperformance in other segments like EAI.
Additionally, while LyondellBasell’s dividend remains secure for now, the company is taking measures to manage cash flow and spending to protect it. The anticipated cash tailwinds in the fourth quarter and strategic capital expenditure cuts are crucial for maintaining financial health. However, the ongoing risks to the dividend and the potential for earnings deceleration contribute to the Hold rating, as the company navigates through a challenging market environment.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $53.00 price target.