The firm maintained its "hold" rating on the stock.
Capital expenditures should increase to between $2 billion and $2.5 billion annually as the Houston-based chemical company sequences larger growth projects, Jefferies noted. Free cash flow should continue to support stock repurchases while the balance sheet will be reserved for M&A.
Margins for the second half of this year are better than expected, the firm mentioned. Delays to rival projects should "keep feedstock balances loose in 2017," though earnings will likely be flat year-over-year, Jefferies claimed.
"Our concerns on a potential 1-2 quarter ethane bottleneck are more focused on 2018-2019, when US ethylene production ramps up and export capacity comes onstream," the firm said.
Shares of LyondellBasell closed slightly higher in Thursday's trading session.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
LyondellBasell's strengths such as its notable return on equity, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: LYB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.