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UPDATE: UBS Downgrades Westlake Chemical (WLK) to Sell; Ethane Headwinds Loom

August 27, 2012 7:26 AM EDT Send to a Friend
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Price: $97.13 --0%

Rating Summary:
    4 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - August 27, 2012 10:02 AM EDT)

UBS downgraded Westlake Chemical (NYSE: WLK) from Neutral to Sell. PT raised from $54 to $61.

Analyst, Gregg A. Goodnight, said, "We reduce our rating for WLK to Sell based on our view of a $61 per share valuation which provides an excess return of a negative 17%. We believe that the current stock at near $69 has been buoyed in the near-term by an unusual combination of factors that will moderate starting later in 2012."

"We expect WLK’s 3Q EPS will beat the consensus, as cheap ethane and higher ethylene/PE pricing boost margins. We trim our 2012E EPS to $5.00 from $5.25 to reflect lower 4Q margins and the Petro 2 cracker outage. We cut our 2013/2014E EPS to $5.20/$6.15 from $6.00/$7.00 on lower assumed margins."

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 $69.50 yesterday.




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