Piper downgrades Westlake on ‘dampened’ earnings outlook

Piper Sandler downgraded Westlake (WLK) to Neutral from Overweight with a price target of $120, down from $135. The firm says Westlake’s midcycle earnings power is lower than previous expectations. The company’s earnings are “dampened” by the lack of growth in new build homes, the analyst tells investors in a research note. Piper believes Westlake’s profitability, volume expansion, and a better price environment are “lacking traction.”