LyondellBasell downgraded to Hold from Buy at Jefferies

Jefferies analyst Laurence Alexander downgraded LyondellBasell to Hold from Buy with a price target of $90, down from $113. With OPEC’s production cut and U.S. natural gas testing $2 per MMBTU, the U.S. shale advantage thesis has played out, the analyst tells investors in a research note. In addition, a U.S. recession in the second half of 2023 or 2024 still presents "significant risk to sentiment" as it will likely trigger another round of destocking and margin erosion, says the firm. It believes LyondellBasell’s circularity initiatives should bolster its mid-cycle EBITDA "eventually," but not enough to improve the near-term risk/reward.