LyondellBasell upgraded to buy as EBITDA surges and growth outlook improves

LyondellBasell Industries (LYB) has been upgraded to a buy rating due to its stronger infrastructure and favorable market position. The company's EBITDA margins jumped from 9% to 23%, driven by cost optimization and supply disruptions in the Middle East. With Bayport operations resuming, further growth is expected. LYB trades at a forward 6.25x EBITDA multiple with a projected 111% year-over-year EBITDA growth, offering better value and growth compared to peers like DOW. Despite a dividend cut, LYB still provides a 4.1% yield supported by strong cash flow, making it an attractive investment in the materials sector.