LyondellBasell Cut to Equal Weight in Broad Wells Fargo Sector Reset

LyondellBasell Industries N.V. (NYSE:LYB) is included among the Best Stocks for a Dividend Achievers List.

On December 19, Wells Fargo analyst Michael Sison cut LyondellBasell Industries N.V. (NYSE:LYB) to Equal Weight from Overweight and lowered the price target to $45 from $55. The call reflects a tougher view on the chemicals sector overall. Wells Fargo downgraded four companies, saying its industry checks suggest “trough-like conditions” may linger into the first half of 2026. The firm pointed to a slow recovery in China and weak housing markets in the U.S. and Europe as ongoing drags on demand. Interest rate cuts could help over time, but the analyst said clear triggers for a rebound in valuations are still likely a few quarters away.

That backdrop shows up clearly in LyondellBasell Industries N.V. (NYSE:LYB)’s stock. Shares are down nearly 41% so far in 2025. Higher raw material costs, soft demand, and tougher competition have all taken a toll. In the third quarter, the company reported revenue of $7.73 billion, down 10% from a year earlier. EBITDA swung sharply, moving to a loss of $835 million from a $1.17 billion profit in the prior-year quarter.

Even with those pressures, management continues to focus on cash. LyondellBasell Industries N.V. (NYSE:LYB) reported a cash conversion rate of 135% in the third quarter, a sign that its cash improvement plan is gaining traction. CEO Peter Z. Vanacker said the company remains on track to generate $600 million in cash flow in 2025 and at least $1.1 billion by the end of 2026.

Operating cash flow reached $983 million during the quarter. The company returned $443 million to shareholders through dividends. That steady cash return suggests confidence in the balance sheet, even as earnings remain under pressure.

LyondellBasell Industries N.V. (NYSE:LYB) is a global chemical producer and one of the world’s largest makers of polymers. Its scale and technology leadership remain intact, even as the cycle works through a difficult phase.

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