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published in Blogs
Jul 17, 2021
Dow (DOW, $59.98) and LyondellBasell (LYB, $96.04) shares downgraded by Bank of America analyst

Dow (DOW, $59.98) and LyondellBasell (LYB, $96.04) shares downgraded by Bank of America analyst

Shares of Dow Inc. and LyondellBasell  fell after Bank of America analyst Steve Byrne downgraded rating on the chemicals companies.

Byrne cut his rating on Dow Inc. shares to underperform from neutral, while lowering his price target to $68 from $71. He downgraded LyondellBasell stock to neutral from buy and reduced his price target to $114 from $117.

The lowered outlook was largely due to the possibility of commodity price inflation peaking. The analyst is concerned that the risk could hurt a number of chemical chains as China slows, production recovers, and spending shifts from goods to services. “This is particularly true for U.S. polyethylene markets, as inventory balances approach healthier levels and domestic demand is being met. While U.S. polyethylene prices could move higher from here, we see the strength as increasingly at risk, with substantial downside possible,” Byrne noted.

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