Westlake slips after BMO cuts to 'market perform'

Westlake Corp WLK.N shares were down 2.3% to $73 in premarket trading after BMO Capital Markets cut the stock to market perform from outperform and reduced its price target to $82 from $96, which represents a 9.7% upside to the stock's last close.

"With commodity prices having leveled/fallen and mortgage rates reaching new highs (further muddying the housing recovery), we believe it makes sense to step to the sidelines and wait for a better entry point," said the brokerage.

BMO said it upgraded WLK at the start of the Iran conflict expecting "they would benefit from the lift in oil prices (given their lower cost energy/raws) which would bridge them to a housing recovery."

Up to the last day's close, WLK was up 1.1% year to date.