LyondellBasell: Less Generous And Smaller, But In A Better State Now (Rating Upgrade)

The Alpha Sieve 5.14K Followers Follow Summary LyondellBasell Industries is upgraded to a buy, reflecting a more competitive infrastructure base and favorable market positioning. LYB's EBITDA margins surged from 9% to 23% due to cost optimization and Middle East supply disruptions, with further upside on the cards as Bayport resumes. At a forward 6.25x EBITDA multiple and projected 111% YoY EBITDA growth, LYB offers superior value and growth versus DOW. Despite a dividend cut, LYB maintains a 4.1% yield, backed by robust cash coverage. LYB looks like a promising mean reversion bet within the materials universe and is benefiting from reasonably strong momentum cues. Jonathan Kitchen/DigitalVision via Getty Images Background LyondellBasell Industries ( LYB ) is a Netherlands-incorporated chemical and polymers juggernaut whose solutions are relied upon by a whole host of participants within the global petrochemical value chain. LYB, which manufactures its produce from over This article was written by The Alpha Sieve 5.14K Followers Follow Investment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.