UBS Downgrades Westlake Chemical (WLK) to Sell; Stock Getting Ahead of Itself

UBS downgraded Westlake Chemical (NYSE: WLK) from Neutral to Sell, price target raised from $45 to $49.

UBS analyst said, "Stock gets ahead of itself with a 40% surge in just 3 weeks: With the polyethylene inventory correction apparently over, commodity product prices are rebounding off the bottom. The cost of ethane, a key raw material, has fallen to an extraordinarily low level. The cost of natural gas, a key source of energy, has plummeted. And finally, some investors may believe WLK will buy Georgia Gulf (NYSE: GGC) at a cheap price. We believe the stock more than reflects these developments...At this time we do not believe that GGC will sell out at less than $40."

"We anticipate higher margins and are raising our 2.011/2012/2013 EPS estimates from $3.90/2.55/4.15 to $3.93/3.45/4.70, respectively."

For an analyst ratings summary and ratings history on Westlake Chemical click here. For more ratings news on Westlake Chemical click here.

Shares of Westlake Chemical closed at $56.85 yesterday.

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