Nomura Securities Starts Westlake Chemical (WLK) at Neutral

Nomura Securities initiates coverage on Westlake Chemical (NYSE: WLK) with a Neutral rating and a price target of $76.00.

Analyst Aleksey Yefremov commented, "We initiate Westlake Chemical (WLK) with a Neutral rating and $76 target price. Our rating is predicated on expectation of a near-term (2H15) decline in prices of key commodities: polyethylene, caustic soda, and PVC. We also consider valuations extended compared to other ethylene/PE producers (Buyrated LYB and DOW). Still, after rebalancing in 2H15, we expect Westlake to benefit from a strong ethylene/ polyethylene (PE) market in 2016–17 and better PVC and fabricated products margins. We also expect management to continue its track record of responsible capital allocation."

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 $62.59 yesterday.

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