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Why LyondellBasell Industries (LYB) Is Getting Attention Today

Simply Wall St · 1d ago

LyondellBasell’s exoIQ partnership puts materials expertise in focus

LyondellBasell Industries (LYB) is in the spotlight after partnering with exoIQ on materials for the B900 active back exoskeleton, a wearable device designed to support users during physically demanding tasks.

LyondellBasell Industries has seen momentum cool in the past month, with a 30 day share price return down 6.7%. However, the year to date share price gain of 33.8% and 1 year total shareholder return of 36.5% still point to a strong recent run. Recent moves like the exoIQ tie up sit against that backdrop of solid near term gains but a weaker 3 year and 5 year total shareholder return. This may explain why traders are reassessing both growth potential and risk appetite around the current US$59.41 share price.

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After a strong run over the past year but a weaker three and five year record, the question for LyondellBasell Industries now is whether most of the easy upside is already behind the stock or still ahead on valuation.

Most Popular Narrative: 13% Undervalued

LyondellBasell Industries is described as undervalued in the most widely followed narrative, with a fair value of $68.59 compared to the latest close of $59.41. As a result, the focus is on what needs to go right operationally for that gap to close.

The main factor that has to go right is execution on cost reduction and cash improvement initiatives. This includes maintaining lower fixed costs and strong EBITDA to cash conversion while delivering planned portfolio exits and circular polymer projects.

See why 87 investors see LyondellBasell Industries as 13% undervalued.

Result: Fair Value of $68.59 (UNDERVALUED)

Still, the narrative around LyondellBasell Industries could be shaken if petrochemical tightness eases quickly or if further operational outages hit cash generation again.

Find out about the key risks to this LyondellBasell Industries narrative.

Next Steps

Mixed messages in the LyondellBasell Industries story today. Consider acting while sentiment remains divided and review the underlying numbers yourself with 3 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.