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Investing.com - Evercore ISI has reduced its price target on LyondellBasell Industries (NYSE:LYB) to $65.00 from $90.00 while maintaining its "In Line" rating on the stock. The company, currently trading at $51.10 and commanding a market cap of $16.4 billion, has seen its shares decline over 40% in the past year.
The significant 28% reduction in price target reflects Evercore ISI’s reassessment of LyondellBasell’s earnings potential, with the firm now projecting a "near/medium-term ’mid-cycle’ EBITDA of $5.5 Bn." According to InvestingPro data, the company’s current EBITDA stands at $2.8 billion, while maintaining a "Fair" overall financial health score.
Evercore ISI noted that European operations are "right-sizing," oxyfuels are "no longer over-earning," and industry "oversupply" is expected to continue into the late decade, all contributing factors to the lower valuation.
The research firm suggested that chemical industry investors will likely require "tangible indications of improving conditions" before acknowledging any earnings recovery for companies like LyondellBasell.
Looking ahead, Evercore ISI indicated that a multiple of 8.5-9.0x FY26 earnings "seems appropriate," potentially placing the stock in a "$55-60 range until clarity improves on rates impacts, demand, and the company’s ’26 outlook."
In other recent news, LyondellBasell Industries reported its second-quarter 2025 earnings, revealing an adjusted EBITDA of $715 million. This figure fell short of the Bloomberg consensus estimate of $759 million. The company also reported earnings of $0.62 per share, emphasizing a strategic focus on cash flow and innovation in a challenging market environment. LyondellBasell plans to operate its OPAM assets at 85%, OPEAI assets at 75%, and I&D assets at 80% for the third quarter, maintaining a steady operational focus. Additionally, the company highlighted ongoing development in chemical recycling technology and expressed a positive outlook for the latter half of 2025. In terms of analyst opinions, Goldman Sachs reiterated its Sell rating for LyondellBasell, maintaining a price target of $59.00. These developments reflect the company’s strategic priorities and market positioning amid evolving industry dynamics.
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