UBS Maintains a 'Sell' on Westlake Chemical (WLK); Weak Q4, But PE Margins Accelerate

UBS maintains a 'Sell' on Westlake Chemical (NYSE: WLK) price target raised from $49 to $52.

UBS analyst says, "WLK reported 4Q EPS at $0.40, well behind the Street’s $0.62, and a bit softer than our $0.46 estimate...During the earnings call, CEO Albert Chao provided some brief statements on WLK’s recent offer for Georgia Gulf. He reiterated the company’s interest in entering good faith negotiations with GGC, he said that WLK is a “disciplined acquirer” that has extensive industry knowledge and thus a good view of what GGC is worth. In addition, he said that unless WLK sees a “real change” in GGC’s approach, they likely will withdraw the offer at some point."

"We increasing our 2012 EPS estimate to $4.20 from $3.45 and our 2013 EPS estimate to $5.00 from $4.70 assuming cheaper ethane will increase PE margins. Our 2012 estimate is based on $0.68/g ethane price and $$0.73/g in 2013."

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 $58.00 yesterday.

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