Salvator Tiano, an analyst from Bank of America Securities, reiterated the Buy rating on Westlake Corporation. The associated price target was raised to $86.00.
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Salvator Tiano’s rating is based on a combination of factors that highlight Westlake Corporation’s potential for growth despite some challenges. The company’s Housing and Infrastructure Products (HIP) segment has shown resilience, maintaining strong margins even as revenues declined. This stability in HIP provides a buffer against the volatility in the commodity sector, which has been affected by elevated downtime and lower volumes.
Additionally, Tiano notes that cost-cutting measures and asset closures are expected to enhance earnings in the near term. The company’s strategic decisions, such as closing a non-integrated PVC plant in China due to negative margins, demonstrate a focus on maintaining profitability. Furthermore, the potential for mergers and acquisitions adds to the upside potential, leading to a modest increase in the price objective. These factors collectively support the Buy rating for Westlake Corporation.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $92.00 price target.