LyondellBasell Industries' (LYB) Q2 pricing benefits should reverse in Q3 but it will remain elevated from Q1 and should have a sequential tailwind from lower Q3 maintenance and strong Oxyfuels, RBC said in a note Tuesday.
The report said typical seasonality is expected in Q4 amid "punitive" consensus estimates, with 2027 likely to see some modest growth against H2 of 2026 on cost-outs, asset sales.
The note also pointed plan for deleveraging with lower capex and European asset sales that should reduce maintenance capex.
The report said the positive view on the stock is based among others on potential polyolefin margins improvement from higher PE prices on Middle East supply disruptions.
RBC raised its price target to $72 from $65 while keeping its outperform rating.
Price: $59.78, Change: $-1.33, Percent Change: -2.18%