UPDATE: Deutsche Bank Downgrades Westlake Chemical (WLK) to Hold
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Deutsche Bank analyst David Begleiter downgraded Westlake Chemical (NYSE: WLK) from Buy to Hold with a price target of $102.00 (from $104.00).
The analyst commented, "We are downgrading Westlake to Hold from Buy. Westlake shares are up 29% over the past 4 months (S&P: +10%) as forecasted March-May '21 US integrated ethylene / polyethylene margins have more than doubled since November. However, with ethylene / polyethylene production constraints expected to lessen over the next month as the effects of the February deep freeze in Texas are resolved, US integrated ethylene / polyethylene margins are forecasted to decline nearly 40% by year-end. And just as Wesltake shares benefitted from the significant expansion in ethylene chain margins, we believe the shares would react negatively to these margins compressing (significantly) in the back half of year."
Shares of Westlake Chemical closed at $94.64 yesterday.
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