Morgan Stanley analyst Vincent Andrews maintained a Hold rating on Westlake Corporation (WLK – Research Report) yesterday and set a price target of $98.00.
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Vincent Andrews has given his Hold rating due to a combination of factors influencing Westlake Corporation’s current and future financial outlook. The company is facing significant charges related to the closure of its Pernis facility in the Netherlands, which will incur a total of €190 million over several years. This decision follows the earlier mothballing of certain capacities at the site, indicating a strategic shift in operations.
Despite these closures, Westlake’s Epoxy business is expected to see a modest net EBITDA benefit, as losses from the Pernis site may turn into profitability by sourcing upstream products from third parties. However, the full impact of these changes will not be realized until 2026, as the shutdowns are scheduled for late 2025. The company’s decision is influenced by factors such as higher European natural gas prices and global oversupply, which have pressured margins. Given these circumstances, Andrews believes a Hold rating is appropriate as the company navigates these transitional challenges.
In another report released on June 6, Wells Fargo also maintained a Hold rating on the stock with a $76.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is neutral on the stock.
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