
Westlake Chemical (WLK) Stock Forecast & Price Target
Westlake Chemical (WLK) Analyst Ratings
Bulls say
Westlake Corp is experiencing a positive outlook due to an increase in U.S. housing starts, which rose by 0.7% year-over-year through August, indicating a stable construction market that benefits the company’s Housing and Infrastructure Products segment. Additionally, margins improved to 23.7%, significantly above market expectations and the company’s own guidance, showcasing operational strength and effective management. With favorable forecasts for PVC pricing and the potential for robust EBITDA growth in the coming years, Westlake is well-positioned for continued performance enhancement.
Bears say
Westlake Corp faces significant headwinds with US contract prices for polyvinyl chloride declining by 3 cents per pound in the third quarter, which, combined with a shift to lower-margin products, resulted in a 4.2% year-over-year drop in EBITDA margins to 19.7%. Additionally, the housing market showed weakness with a 7% year-over-year decline in US housing starts in August, which negatively impacts the demand for Westlake's Housing and Infrastructure Products segment. The company’s European operations are also vulnerable to weaker economic conditions, further complicating its financial outlook amidst fluctuating crude prices that threaten ethylene margins and could lead to demand destruction.
This aggregate rating is based on analysts' research of Westlake Chemical and is not a guaranteed prediction by Public.com or investment advice.
Westlake Chemical (WLK) Analyst Forecast & Price Prediction
Start investing in Westlake Chemical (WLK)
Order type
Buy in
Order amount
Est. shares
0 shares