
Westlake Chemical (WLK) Stock Forecast & Price Target
Westlake Chemical (WLK) Analyst Ratings
Bulls say
Westlake Corp demonstrates a positive outlook supported by a modest year-over-year increase in total U.S. housing starts and robust performance in its Pipes/Fittings and Housing Infrastructure Products segments amid ongoing infrastructure spending. The company's margins of 23.7% notably exceed consensus expectations and management guidance, reflecting operational efficiency and effective market positioning. Furthermore, the potential for a macro-driven recovery in its commodity-centric Performance and Essential Materials segment, alongside strategic M&A activities, positions Westlake for significant future EBITDA growth, reinforcing the firm's financial strength and resilience.
Bears say
Westlake Corporation has experienced a decline in US contract prices for polyvinyl chloride, which fell by 3 cents per pound in the third quarter, contributing to a significant reduction in EBITDA margins to 19.7%, a decrease of 4.2% year-over-year. Additionally, US housing starts are down 7% year-over-year as of August, indicating persistent weakness in the housing market, particularly in single-family units, which may further hurt Westlake's Housing and Infrastructure Products segment performance. The company's European operations are also facing challenges due to weaker economic conditions, compounded by potential volatility in ethylene margins influenced by fluctuating crude oil prices, raising concerns over future demand and profitability.
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
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