Westlake Chemical Downgraded to Neutral; Price Target Raised to $119 on EBITDA Upside
Bank of America cut Westlake Chemical’s rating to Neutral, raised its price target to $119 from $115, and lifted Q1 EBITDA to $386M and annual to $2.322B. Analysts say YTD rallies up to 80% fueled by conflict-related tailwinds may reverse as petrochemical oversupply and normalized pricing pressure margins.
1. Rating Change and Price Target Adjustment
Analysts downgraded Westlake Chemical’s rating to Neutral and raised its price target to $119 from $115.
2. Upgraded Earnings Forecasts
They lifted Q1 EBITDA forecast to $386 million and annual estimate to $2.322 billion, driven by stronger polyolefins and PVC margins offset by building products headwinds.
3. Tailwinds Risks and Market Outlook
Analysts warned that YTD share rallies up to 80% fueled by conflict-related tailwinds may fade as petrochemical oversupply and pricing normalization pressure margins, shifting focus back to fundamentals by 2027.