Westlake Corporation, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Matthew DeYoe from Bank of America Securities reiterated a Buy rating on the stock and has a $83.00 price target.
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Matthew DeYoe has given his Buy rating due to a combination of factors including Westlake Corporation’s strategic restructuring initiatives and cost-saving measures. The company has announced the closure of several production facilities in North America, which is expected to result in significant annual EBITDA savings and increased free cash flow. These actions are part of a broader effort to optimize their operational footprint and improve financial performance.
Despite the anticipated short-term challenges, such as a projected negative EBITDA for the fourth quarter of 2025, the long-term outlook remains positive. The restructuring is expected to contribute to substantial growth in EBITDA by 2026, driven by asset optimization and cost efficiencies. Additionally, the company’s proactive steps to address market conditions and potential for a firming cycle bottom support the Buy rating, as these factors position Westlake favorably compared to its peers.