Wells Fargo Starts Westlake Chemical (WLK) at Market Perform; Advantaged Ethane But Lackluster Vinyls
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Price: $148.37 -1.02%
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Wells Fargo initiates coverage on Westlake Chemical (NYSE: WLK) with a Market Perform. PT range $42-$44.
Wells analyst says, "While we believe the company is among the biggest beneficiaries of the low-cost shale gas phenomenon and have been impressed with its ability to convert into significant profit, we believe that, presently, there are other more compelling opportunities in commodity petrochemicals. WLK shares have not corrected as much as others, outperforming the S&P 500 over the past month (10% versus 4%, respectively) and year (50% versus 4%, respectively). PVC pipe is likely to remain a drag on Vinyls profit for the foreseeable future, but we remain confident in caustic soda. Finally, the company’s balance sheet puts it in a strong position for the long term, in our view. We introduce our 2011E EPS at $4.50 and 2012E at $4.75."
For more ratings news on Westlake Chemical click here and for the rating history of Westlake Chemical click here.
Shares of Westlake Chemical closed at $39.72 yesterday.
Wells analyst says, "While we believe the company is among the biggest beneficiaries of the low-cost shale gas phenomenon and have been impressed with its ability to convert into significant profit, we believe that, presently, there are other more compelling opportunities in commodity petrochemicals. WLK shares have not corrected as much as others, outperforming the S&P 500 over the past month (10% versus 4%, respectively) and year (50% versus 4%, respectively). PVC pipe is likely to remain a drag on Vinyls profit for the foreseeable future, but we remain confident in caustic soda. Finally, the company’s balance sheet puts it in a strong position for the long term, in our view. We introduce our 2011E EPS at $4.50 and 2012E at $4.75."
For more ratings news on Westlake Chemical click here and for the rating history of Westlake Chemical click here.
Shares of Westlake Chemical closed at $39.72 yesterday.
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