UPDATE - UBS Upgraded Westlake Chemical (WLK) to Neutral; Valuation Call; Shale Gas Ethane Tailwind

UPDATE - UBS upgraded Westlake Chemical (NYSE: WLK) from Sell to Neutral, price target lowered from $50 to $41.

UBS analyst says, "Westlake Chemical is a strong cash generator due to its light-feed based cracking assets that are able to utilize cheap ethane from shale gas. A strong balance sheet and low net debt make this stock desirable in a time of uncertainty when “flight to quality” is preferred."

"WLK is able to crack 100% light feeds and to take advantage of cheap ethane from North American shale gas. The growth of shale gas and the advantaged light feeds that it produces is likely to extend for the next several years. Westlake chemical is expanding its two Lake Charles crackers 20% by 2014."

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