In a report released today, Steve Byrne from Bank of America Securities reiterated a Buy rating on Westlake Chemical (WLK – Research Report), with a price target of $90.00.
Steve Byrne has given his Buy rating due to a combination of factors that highlight Westlake Chemical’s resilience despite recent challenges. The company experienced a tough first quarter, particularly within its Performance and Essential Materials (PEM) segment, which posted a significant operating loss. However, Byrne emphasizes the strength of Westlake’s balance sheet as a key reason for maintaining a positive outlook. With a projected net leverage of just 1.1x by the end of the year, Westlake is well-positioned to take advantage of the downturn through strategic buybacks and acquisitions.
Furthermore, Byrne notes that while estimates for 2025 and 2026 EBITDA have been revised downward, there remains potential upside in the Housing and Infrastructure Products (HIP) segment. Although HIP’s recent performance lagged behind expectations, Byrne believes that the margin outlook is conservative and anticipates improvements in the latter half of the year. This, combined with Westlake’s ability to navigate market fluctuations, supports the Buy rating with a price objective of $90.
According to TipRanks, Byrne is an analyst with an average return of -2.3% and a 44.17% success rate. Byrne covers the Basic Materials sector, focusing on stocks such as Westlake Chemical, Element Solutions, and DuPont de Nemours.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $96.00 price target.