Wells Fargo & Company Cuts Westlake (NYSE:WLK) Price Target to $89.00

Key Points

• Wells Fargo cut Westlake’s price target from $110 to $89 while maintaining an “equal weight” rating, implying roughly 16.7% upside from the prior close.
• Analyst sentiment remains cautious: Westlake has a consensus “Hold” rating and an average price target of $96.14, with several firms recently lowering ratings or targets.
• Westlake’s latest quarterly results exceeded expectations, with EPS of $2.01 and revenue of $3.27 billion, although shares fell 5.4% to $76.25 amid ongoing margin, housing-market and raw-material risks.

Westlake (NYSE:WLK - Get Free Report) had its target price cut by equities researchers at Wells Fargo & Company from $110.00 to $89.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the specialty chemicals company's stock. Wells Fargo & Company's price target would indicate a potential upside of 16.72% from the company's previous close.

Several other analysts have also weighed in on WLK. Wall Street Zen lowered Westlake from a "hold" rating to a "sell" rating in a report on Sunday, May 3rd. BMO Capital Markets reiterated a "market perform" rating and set a $96.00 price objective on shares of Westlake in a research report on Monday, July 6th. Morgan Stanley reduced their target price on shares of Westlake from $106.00 to $92.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 2nd. Weiss Ratings restated a "sell (d)" rating on shares of Westlake in a report on Friday, July 17th. Finally, Zacks Research downgraded shares of Westlake from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $96.14.

Westlake Trading Down 5.4%

Shares of NYSE:WLK traded down $4.38 during trading on Wednesday, reaching $76.25. The company's stock had a trading volume of 357,268 shares, compared to its average volume of 1,243,401. The stock has a market capitalization of $9.77 billion, a PE ratio of -6.00 and a beta of 0.63. Westlake has a 12 month low of $56.33 and a 12 month high of $124.23. The company has a current ratio of 2.17, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. The firm's 50 day simple moving average is $78.90 and its two-hundred day simple moving average is $94.12.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.83 by $0.18. The business had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.24 billion. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The company's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the business posted ($1.11) earnings per share. On average, research analysts predict that Westlake will post 3.2 EPS for the current fiscal year.

Hedge Funds Weigh In On Westlake

Hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada raised its holdings in shares of Westlake by 90.0% in the first quarter. Royal Bank of Canada now owns 38,687 shares of the specialty chemicals company's stock valued at $3,869,000 after acquiring an additional 18,321 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Westlake by 9.6% in the 1st quarter. AQR Capital Management LLC now owns 19,094 shares of the specialty chemicals company's stock valued at $1,881,000 after purchasing an additional 1,668 shares in the last quarter. United Services Automobile Association purchased a new stake in shares of Westlake in the 1st quarter worth approximately $211,000. Cetera Investment Advisers lifted its position in shares of Westlake by 43.6% in the 2nd quarter. Cetera Investment Advisers now owns 4,350 shares of the specialty chemicals company's stock worth $330,000 after purchasing an additional 1,320 shares during the period. Finally, Prudential Financial Inc. boosted its stake in shares of Westlake by 18.2% during the second quarter. Prudential Financial Inc. now owns 3,788 shares of the specialty chemicals company's stock valued at $288,000 after purchasing an additional 582 shares in the last quarter. Institutional investors own 28.40% of the company's stock.

Westlake News Roundup

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Earnings and revenue topped estimates. Westlake reported adjusted diluted EPS of $2.01 versus consensus estimates ranging from $1.83 to $1.93, while revenue reached $3.27 billion, above the approximately $3.24 billion estimate. EPS improved from a $1.11 loss in the year-earlier quarter. Westlake Tops Q2 Earnings Estimates
• Positive Sentiment: Profitability rebounded sharply. Net income attributable to Westlake was $260 million, or $2.01 per share, compared with a $142 million loss a year ago. EBITDA rose to $679 million from $340 million last year and $235 million in the first quarter, supported by higher prices, increased volumes and the company’s profitability-improvement plan, which targets a $600 million operating-income benefit. Westlake Second-Quarter Results
• Positive Sentiment: PEM delivered the biggest turnaround. Performance and Essential Materials operating income improved to $185 million from a $318 million loss, as average selling prices increased 14% and EBITDA reached $416 million. Westlake also generated $111 million of quarterly free cash flow, reduced debt by roughly $500 million and returned $99 million through dividends and share repurchases. Westlake Reports Higher Net Income and EBITDA
• Neutral Sentiment: Westlake Chemical Partners declared a $0.4714 quarterly distribution. The payment supports the broader Westlake group’s cash-generation profile, but it applies to affiliate WLKP, not directly to WLK. Westlake Chemical Partners Distribution
• Negative Sentiment: Risks remain. HIP operating income fell $10 million year over year as pricing and margins weakened, while slower housing activity and raw-material inflation could pressure results. Management also cited volatility tied to the Middle East conflict and global supply-demand conditions.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source