LyondellBasell (LYB) Target Lowered at BofA as Chemicals Outlook Stays Cautious

LyondellBasell Industries N.V. (NYSE:LYB) is included among the 13 Best Dividend Stocks Paying Over 6%.

On January 8, BofA analyst Matthew DeYoe lowered LyondellBasell Industries N.V. (NYSE:LYB) price target to $46 from $52 and kept a Neutral rating. BofA said the move came as it refreshed price targets across the Chemicals names it covers, rather than because of one specific issue at LYB.

BofA’s broader stance on the sector remains cautious. The firm expects commodity chemicals to deal with another year of oversupply. Specialty chemicals are still working through an uneven demand backdrop, and the agriculture setup looks mixed. That said, the firm does see a few potential positives on the horizon. It pointed to possible catalysts such as PMI indicators improving, interest rate cuts, and capacity rationalization in China. The firm believes that those are encouraging signals, but it’s too early to count on them.

LyondellBasell Industries N.V. (NYSE:LYB) itself has been focused on controlling what it can. In Q3 2025, the company highlighted better cash flow and meaningful fixed cost reductions, even while global end markets stayed difficult. Management also stressed portfolio optimization, including a pending sale of European assets and the decision to delay certain capital projects to preserve cash.

LYB also recorded a $1.2 billion impairment charge tied to weaker demand in specific regions and segments, which weighed on reported results and affected the quarter’s tax picture. On capital allocation, management signaled a more conservative approach going forward. The company reduced its 2026 CapEx guidance to $1.2 billion, while still emphasizing shareholder returns and maintaining an investment-grade balance sheet.

LyondellBasell Industries N.V. (NYSE:LYB) is a major global chemical producer, manufacturing plastics, chemicals, and refined fuels. The company also licenses petrochemical technologies and has been investing in circular economy initiatives, including recycling-based solutions.

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Disclosure: None.