LyondellBasell downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded LyondellBasell (LYB) to Neutral from Overweight with a price target of $95, down from $112. The firm says its diminished growth outlook for chemicals is predicated on “several underlying fundamental factors largely emanating” from structural issues in the economies outside the U.S., especially Europe and Asia, with China’s role dominating the outlook. Piper also sees significant downside risk based on some of the policies now being considered by the incoming Trump administration, primarily policies which will increase oil and gas production well beyond current levels and tariffs which might meet retaliatory pushback. It believes LyondellBasell may be subject to slower growth in earnings through 2026 based on its product portfolios and the industries and regions it has substantial ties to.