| Over a week ago | ||||
Piper Sandler analyst… Piper Sandler analyst Charles Neivert raised the firm's price target on Westlake to $130 from $110 and keeps a Neutral rating on the shares after updating the firm's model to incorporate data from Q4 earnings, 2023 guidance, revisions to the firm's outlook for chemical industry fundamentals and initial estimates for 2024. | ||||
RBC Capital analyst Arun… RBC Capital analyst Arun Viswanathan downgraded Westlake to Sector Perform from Outperform with a price target of $128, up from $125. The analyst cites the company's Q4 earnings miss and continued weak demand, particularly in housing and construction, behind the downgrade. While caustic has been strong, higher chlorine rates could lead to summer caustic price declines, the analyst tells investors in a research note. RBC adds that it believes this could offset some of Westlake's cyclical upside and sees only 15%-20% uplift in the company's EBITDA from Q1 trough levels to Q3. | ||||
KeyBanc raised the… KeyBanc raised the firm's price target on Westlake to $103 from $95 on the back of stronger earnings than initially forecast, while keeping an Overweight rating on the shares. The firm believes the shares' underperformance after the Q4 report comes as a result of management's tone suggesting only modest quarter-over-quarter improvement in Q1. KeyBanc senses investors were hopeful that the end of destocking was in sight and there would be a more noticeable pickup in PE and PVC markets. | ||||
Deutsche Bank analyst… Deutsche Bank analyst David Begleiter raised the firm's price target on Westlake to $120 from $105 and keeps a Hold rating on the shares post the Q4 results. The analyst says the share price largely reflects the company's improving fundamentals. | ||||
Wells Fargo analyst… Wells Fargo analyst Michael Sison raised the firm's price target on Westlake to $130 from $125 and keeps an Overweight rating on the shares. The firm senses Q4 was a trough for earnings, with demand improving for PVC/PE and operating rates moving above 80%, offsetting a weaker backdrop for construction. Wells sees chlor alkali and PE margins holding well above past lows. | ||||
Reports Q4 revenue… Reports Q4 revenue $3.33B, consensus $3.39B. | ||||
| Over a month ago | ||||
KeyBanc analyst Aleksey… KeyBanc analyst Aleksey Yefremov raised the firm's price target on Westlake to $95 from $85 on a higher multiple assumption, which is more in line with its five-year average. The analyst keeps an Underweight rating on the shares. | ||||
| Over a quarter ago | ||||
Citi analyst P.J. Juvekar… Citi analyst P.J. Juvekar raised the firm's price target on Westlake to $94 from $80 and keeps a Sell rating on the shares. Juvekar says that while there is an inclination to go back to cyclical chemical names after having lagged in 2022, he has decided to "stay defensive" going into 2023. He believes the impact of higher rates and uncertainty of the China reopening situation is likely to continue to impact the industry. "A faster China recovery would push us towards cyclicals," Juvekar tells investors in a research note. He recommends focusing on defensive names and believes it is too early to jump into commodities. | ||||
JPMorgan analyst Jeffrey… JPMorgan analyst Jeffrey Zekauskas downgraded Westlake to Neutral from Overweight with a price target of $109, down from $135. Prices for polyvinyl chloride are under pressure due to seasonally weaker demand, higher interest rates, weaker offshore demand and improved supply availability, Zekauskas tells investors in a research note. He thinks the price weakness in PVC is offsetting pricing gains in caustic soda. The analyst is "reluctant to build new positions" in Westlake "after such a sharp upward change in value that does not reflect changes in operating fundamentals." The share price has risen to a level that is now closer to fair value in the current environment, writes Zekauskas. | ||||
Barclays analyst Michael… Barclays analyst Michael Leithead raised the firm's price target on Westlake to $118 from $105 and keeps an Equal Weight rating on the shares post the Q3 results. | ||||
