BMO downgrades LyondellBasell on weak earnings outlook

LyondellBasell Industries

15/12/2025 13:58

** BMO Capital Markets downgrades chemical maker LyondellBasell LYB.N to "underperform" from "market perform"

** It cuts price target to $36 from $48, implying 18.9% downside to the stock's last close on Friday

** BMO says the downgrade was due to the significant fundamental and financial pressures the company finds itself in as it heads into 2026

** Brokerage adds the commodity fundamentals are worse than feared, and they do not see a meaningful earnings recovery in 2026-27, which could continue to pressure the stock

** "Based on the lower earnings outlook and LYB's focus on maintaining its IG credit rating, we see a very high likelihood that management cuts the dividend significantly in 1H26" - BMO

** Four out of 22 brokerages rate the stock "Buy", 14 "Hold" and 4 "Sell" or lower; their median PT is $50 - data compiled by LSEG

** As of last close, LYB down 40.23% YTD

 (Reporting by Sumit Saha in Bengaluru)

 ((Sumit.Saha@thomsonreuters.com;))