ANALYST: Citi Downgrades LyondellBasell after recent rally in stock price

Following a recent rally in the company's stock price, Citi Research issued a report on LyondellBasell Industries NV

. Citi lowered LyondellBasell's rating from Buy to Neutral and lowered their price target from $101 to $96. Analyst P.J Juvekar and John Hirt wrote, "LyondellBasell Industries shares have recouped almost half of their loss since the September 2014 high. Chemical prices are reacting to lower oil prices, albeit with a lag, and we expect ethylene/PE margins to fall sequentially in the first half of 2015. We are moving to the sidelines and think there could be a better entry point." There are 2 catalysts for the company going forward. The first is Lyondellbasell recently appointed Bob Patel as CEO of the company. Management will discuss strategies with investors on April 29th. The second is the company's under-levered balance sheet which they could use to buy back shares. However, the analysts mention that a leveraged buy back near the ethylene cycle peak could be a risky strategy for a cyclical company. LyondellBasell Industries NV is currently priced at $89.99.