LyondellBasel (LYB) Climbs 10.3% as Citi Says ‘Buy’, Hikes Price Target by 55%

LyondellBasell Industries NV (NYSE:LYB) is one of the 10 Stock Winners in a Brutal Market.

LyondellBasell soared by 10.33 percent on Thursday to close at $74.33 apiece, as investors took heart from Citigroup’s bullish stance for its stock, having upgraded its rating and price target by 55 percent.

In a market report, Citigroup issued a new price target of $76 for the company, a marked increase from the $49 previously. It also recommended investors to “buy” versus staying “neutral” prior.

The report reflected the investment firm’s optimism for LyondellBasell Industries NV (NYSE:LYB) and other North American chemical producers with access to low-cost natural gas feedstocks, saying that they are expected to benefit through higher profit margins from the ongoing tensions in the Middle East that continue to disrupt supply and propel oil prices higher.

LyondellBasel (LYB) Climbs 10.3% as Citi Says 'Buy', Hikes Price Target by 55%

According to Citi, it expects LyondellBasell Industries NV (NYSE:LYB) to grow its earnings before interest, tax, depreciation and amortization by 32 percent, to be driven by stronger polyolefins margins and higher derivative spreads.

aiDespite the outlook, Citi underscored the uncertainty in the duration of the conflict, but noted that several factors such as logistics bottlenecks, supply disruptions, and low inventories, will continue to drive chemical prices higher over the next several quarters even if tensions subside.

While we acknowledge the risk and potential of LYB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LYB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.