LyondellBasell (LYB) Gets a Buy Rating from Alembic Global

By Austin Angelo

In a report released today, Hassan Ahmed from Alembic Global reiterated a Buy rating on LyondellBasell (LYBResearch Report), with a price target of $120. The company’s shares closed on Friday at $84.58.

Ahmed observed:

“We acknowledge Q4’18 EBITDA’s flirtation with trough-ish levels, but, in our opinion, a series of one-offs during the quarter, including planned and unplanned outages, were responsible for masking the company’s true earnings power and diminishing Q4’18 EBITDA by USD225m. Starting with a base of USD4,848 (“trough” Q4’18 EBITDA, annualized), we layer on: 1) the reversal of outage-related lost EBITDA of USD900m, annualized; 2) EBITDA accretion of the mid-year start-up of the company’s greenfield Hyperzone HDPE facility; 3) USD58m gleaned from the I&D segment’s contracting improvements; and 4) lost EBITDA of from company-announced planned turnarounds. Our analysis pegs LYB’s trough-level EBITDA for 2019 at USD5,726m, or a valuation of USD94 per share.”

According to, Ahmed is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -7.1% and a 35.0% success rate. Ahmed covers the Consumer Goods sector, focusing on stocks such as Westlake Chemical Corp, Venator Materials Plc, and Celanese Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for LyondellBasell with a $104.56 average price target.

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LyondellBasell’s market cap is currently $31.8B and has a P/E ratio of 7.05. The company has a Price to Book ratio of 2.97.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LYB in relation to earlier this year.

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LyondellBasell Industries NV is an independent chemical company, which engages in the refinery and production of plastic resins and other chemicals. It operates through the following segments: Olefins and Polyolefins-Americas; Olefins and Polyolefins-Europe, Asia, International, Intermediates; and Derivatives; Refining; and Technology.