Citigroup Forecasts Strong Price Appreciation for Westlake (NYSE:WLK) Stock

Key Points

• Citigroup raised its price target on Westlake to $130 and kept a "buy" rating, implying about a 14.6% upside from the company's current price.
• Analyst sentiment is mixed: MarketBeat shows a consensus rating of "Hold" with a $98.13 target (1 Strong Buy, 7 Buy, 8 Hold, 1 Sell), indicating divergence from Citigroup's view.
• Westlake reported a quarterly EPS of ($0.25) that beat estimates while revenue fell 10.9% year‑over‑year; the company still posts a negative net margin and negative PE, and insiders (including the chairman and CFO) have recently sold shares.

Westlake (NYSE:WLK - Get Free Report) had its target price increased by Citigroup from $124.00 to $130.00 in a report released on Thursday,Benzinga reports. The firm currently has a "buy" rating on the specialty chemicals company's stock. Citigroup's target price indicates a potential upside of 14.60% from the company's current price.

A number of other equities analysts also recently commented on the company. Bank of America reiterated a "buy" rating on shares of Westlake in a research report on Monday, March 2nd. Zacks Research upgraded shares of Westlake from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Wells Fargo & Company increased their price target on shares of Westlake from $70.00 to $100.00 and gave the company an "equal weight" rating in a research note on Thursday, February 26th. Mizuho lifted their price target on shares of Westlake from $88.00 to $97.00 and gave the company a "neutral" rating in a research report on Wednesday, February 25th. Finally, Alembic Global Advisors set a $80.00 price target on Westlake in a report on Monday, November 17th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Westlake has a consensus rating of "Hold" and a consensus target price of $98.13.

Westlake Stock Performance

Westlake stock traded up $6.40 during midday trading on Thursday, hitting $113.43. 422,616 shares of the company were exchanged, compared to its average volume of 1,406,935. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $113.48. The firm has a market capitalization of $14.51 billion, a PE ratio of -9.68 and a beta of 0.83. The business has a fifty day simple moving average of $92.04 and a two-hundred day simple moving average of $80.97. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.65 and a current ratio of 2.24.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, February 24th. The specialty chemicals company reported ($0.25) earnings per share for the quarter, topping analysts' consensus estimates of ($1.47) by $1.22. Westlake had a negative net margin of 13.50% and a negative return on equity of 1.22%. The business had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.61 billion. During the same quarter in the prior year, the firm posted $0.06 earnings per share. The company's revenue was down 10.9% compared to the same quarter last year. On average, sell-side analysts forecast that Westlake will post 6.48 earnings per share for the current year.

Insider Activity at Westlake

In other news, Chairman Albert Chao sold 40,836 shares of the business's stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $73.57, for a total transaction of $3,004,304.52. Following the completion of the sale, the chairman owned 627,722 shares in the company, valued at approximately $46,181,507.54. The trade was a 6.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Mark Steven Bender sold 17,409 shares of the company's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $100.92, for a total transaction of $1,756,916.28. Following the completion of the transaction, the chief financial officer owned 44,433 shares of the company's stock, valued at approximately $4,484,178.36. The trade was a 28.15% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Westlake in the 3rd quarter worth $28,000. Quarry LP purchased a new position in Westlake in the 4th quarter valued at about $31,000. Fifth Third Bancorp boosted its holdings in shares of Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock worth $42,000 after purchasing an additional 234 shares during the last quarter. CIBC Private Wealth Group LLC acquired a new position in shares of Westlake in the 3rd quarter valued at $53,000. Finally, Hantz Financial Services Inc. lifted its position in Westlake by 180.3% during the third quarter. Hantz Financial Services Inc. now owns 740 shares of the specialty chemicals company's stock valued at $57,000 after buying an additional 476 shares in the last quarter. 28.40% of the stock is currently owned by institutional investors and hedge funds.

About Westlake

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company's core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.

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