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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.

While we acknowledge the potential of LYB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LYB and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 13 Top Tech Stocks Paying Consistent Dividends.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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