In a report released today, Hassan Ahmed from Alembic Global reiterated a Buy rating on LyondellBasell (NYSE: LYB). The company’s shares closed on Friday at $112.57.
Ahmed noted:
“We believe the I&D segment’s earnings strength is sustainable; in this note, we also make the case that a mix of organic and inorganic growth opportunities will propel LyondellBasell’s earnings even further in the near to medium term. LyondellBasell reported decent second-quarter results within the O&P–Americas segment despite 44% y-o-y declines in Q2’18 spot U.S. ethylene prices. As emphasized in our previous research reports, spot ethylene prices and margins have a limited impact on LyondellBasell’s earnings profile. The main drivers of LYB’s earnings are integrated PE margins—margins that held up well in the quarter. Q2’18’s star performer was the I&D segment, which benefitted from strong volume and margin gains within acetyls and TBA intermediates.”
According to TipRanks.com, Ahmed is a 4-star analyst with an average return of 9.1% and a 60.5% success rate. Ahmed covers the Consumer Goods sector, focusing on stocks such as Westlake Chemical Corp, Venator Materials Plc, and Celanese Corp.
LyondellBasell has an analyst consensus of Moderate Buy, with a price target consensus of $123.38.
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Based on LyondellBasell’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $10.21 billion and net profit of $1.65 billion. In comparison, last year the company earned revenue of $8.41 billion and had a net profit of $1.13 billion.
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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.
