UBS Upgrades Westlake Chemical (WLK) to Neutral

October 6, 2022 6:07 AM EDT
Get Alerts WLK Hot Sheet
Price: $102.24 -3.91%

Rating Summary:
    7 Buy, 14 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 17 | New: 16
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UBS analyst Joshua Spector upgraded Westlake Chemical (NYSE: WLK) from Sell to Neutral with a price target of $95.00 (from $92.00).

The analyst commented, "WLK is down ~40% from mid-year highs, and while risks remain around the housing cycle and PVC demand, we see risk/reward more balanced at current levels. With heightened demand risk near term it's too early for us to get more constructive, but we believe at these levels the downside is nearly priced in. We believe structural changes in market behavior have helped lift chlorine/caustic earnings. WLK also added near ~$0.5B EBITDA in acquisitions, and PVC markets could develop less slack vs prior downturns with minimal added supply near term. Our downside EBITDA ($2.6B vs $3.6B 2023 cons) is higher than WLK's 2020 low (~$1.25B) and average 2018/19 earnings (~$1.85B)."

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 $90.90 yesterday.

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