UPDATE: JPMorgan Downgrades LyondellBasell Industries (LYB) to Neutral

JPMorgan analyst Jeffrey Zekaukas downgraded LyondellBasell Industries (NYSE: LYB) from Overweight to Neutral with a price target of $80.00 (from $115.00).

The analyst comments "LyondellBasell is a large, efficient commodity petrochemical company. Weakening demand in China and Europe, domestic capacity additions, replenished inventories, and logistical constraints are now eroding previously snug S/D dynamics. Each penny per pound of margin erosion in polyethylene equates to about ($130m) of EBITDA. We think it will be difficult for Lyondell’s shares to outperform the market in a falling polyethylene price environment. Lyondell’s dividend yield is 5.8%, and its free cash flow yield is above 14%, but the value of these metrics are likely diminished in a rising rate environment. We rate Lyondell Neutral."

For an analyst ratings summary and ratings history on LyondellBasell Industries click here. For more ratings news on LyondellBasell Industries click here.

Shares of LyondellBasell Industries closed at $81.86 yesterday.

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