LyondellBasell just downgraded at Citi, here’s why

Citi downgraded LyondellBasell to Neutral from Buy with a price target of $98, down from $105. The firm says its r initial view back in October was that polyethylene pricing strength could help lift margins into next year and that Intermediates and Derivatives unit margins could have upside into 2024. However, LyondellBasell’s refining and oxyfuel margins have come down more significantly than expected, the analyst tells investors in a research note. The firm sees the stock’s risk/reward as more balanced, with weaker polyethylene fundamentals and softer oxyfuels and refining but with potential for second half of 2024 upside in the event of a bullwhip restocking event.