Goldman Sachs Downgrades Westlake Chemical (WLK) to Netural, Removes from CL List
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Price: $147.72 -1.45%
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Goldman Sachs downgraded Westlake Chemical (NYSE: WLK) from Conviction Buy to Neutral with a price target of $85.00 (from $87.00).
"While we continue to believe that ethane price estimates for 2013 are too high, we acknowledge that there is currently little downside left to ethane prices given the recent rise in natural gas prices," the analyst comments. "Meanwhile, our Energy team has downgraded its 2013/14 Brent oil price forecasts by $20/bbl to $110 from $130 with further moderation in 2014 to $105 and in 2015 to $100. With higher oil prices no longer our base case we see limited further improvement in the oil-to-ethane ratio that defines WLK's cost advantage. As a result, we think cyclical upside to tighter global operating rates for ethylene is best captured by owning laggards with less US exposure, such as DOW."
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 $76.88 yesterday.
"While we continue to believe that ethane price estimates for 2013 are too high, we acknowledge that there is currently little downside left to ethane prices given the recent rise in natural gas prices," the analyst comments. "Meanwhile, our Energy team has downgraded its 2013/14 Brent oil price forecasts by $20/bbl to $110 from $130 with further moderation in 2014 to $105 and in 2015 to $100. With higher oil prices no longer our base case we see limited further improvement in the oil-to-ethane ratio that defines WLK's cost advantage. As a result, we think cyclical upside to tighter global operating rates for ethylene is best captured by owning laggards with less US exposure, such as DOW."
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 $76.88 yesterday.
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