BMO Capital Lifts LyondellBasell (LYB) Target to $38, Says Dividend Cut May Not Be Enough

LyondellBasell Industries N.V. (NYSE:LYB) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts.

On February 23, BMO Capital raised its price recommendation on LyondellBasell Industries N.V. (NYSE:LYB) to $38 from $36. It reiterated an Underperform rating on the stock. The analyst said management went ahead with the long-expected dividend cut to help steady the balance sheet. Even after the reduction, the analyst believes the dividend may still not be at a fully safe level. Weak demand continues to weigh on the business, which makes the current payout harder to sustain, the analyst told investors in a research note.

LyondellBasell also revised its 2030 climate and circularity targets. The update reflects tighter capital discipline and the reality of current market conditions, while keeping the company’s long-term sustainability direction in place. The company now aims to cut Scope 1 and 2 emissions by 32% from 2020 levels. It also plans to produce 800,000 metric tons of recycled and renewable-based polymers each year by 2030.

The company has already taken steps toward these goals. Its MoReTec-1 recycling plant in Germany is one example. It has also reduced emissions at key facilities and increased its use of renewable energy. CEO Peter Vanacker said the company remains focused on sustainability, but is aligning its efforts with market conditions.

LyondellBasell Industries N.V. (NYSE:LYB) is a global, independent chemical company that develops products used in everyday life, with a focus on supporting more sustainable living.

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