
Westlake Chemical (WLK) Stock Forecast & Price Target
Westlake Chemical (WLK) Analyst Ratings
Bulls say
Westlake Corp has demonstrated resilience in the current economic climate, with total US housing starts up 0.7% year-over-year and strong performance in pipes and fittings driven by infrastructure spending. The company's margins reached 23.7%, exceeding expectations and indicative of effective management amidst fluctuating pricing pressures in the PVC market. Additionally, Westlake's proactive engagement in accretive mergers and acquisitions within its Housing and Infrastructure Products segment suggests a strategy that could unlock further value, potentially positioning the company for significant earnings growth in the coming years.
Bears say
Westlake Corp is facing a negative financial outlook primarily due to a significant decline in US contract prices for polyvinyl chloride, which fell by 3 cents per pound in the third quarter, contributing to a 4.2% year-over-year decrease in EBITDA margins to 19.7%. Additionally, the company is experiencing weak demand driven by a 7% year-over-year drop in US housing starts, particularly affecting single-family projects, which were down 12% in August. Westlake's profitability is further threatened by potential fluctuations in crude oil prices, which could negatively impact ethylene margins, while economic challenges in Europe may also weigh on its business performance.
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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