In a report released today, Vincent Andrews from Morgan Stanley maintained a Hold rating on Westlake Corporation, with a price target of $90.00.
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Vincent Andrews has given his Hold rating due to a combination of factors impacting Westlake Corporation’s financial outlook. One key reason is the updated earnings and EBITDA estimates, which have been revised downward for the upcoming years, indicating potential challenges in achieving the previously anticipated growth. The revisions reflect a slower recovery in production following a significant outage in the chlorovinyls segment, which has affected the company’s operational efficiency.
Additionally, the weak construction market and high long-term interest rates are expected to hinder growth in Westlake’s Housing and Infrastructure Products segment. This, coupled with inflationary pressures on margins, presents further obstacles. Moreover, fluctuations in commodity prices and market spreads for key products like PVC, chlorine, and polyethylene add to the uncertainty, making a Hold rating a prudent choice at this time.
In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $91.00 price target.