Stock of the Day - March 11, 2021

Westlake (WLK)

$63.69

+$1.48 (+2.4%)

Market Cap: $7.95B

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally.

The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products. The Performance and Essential Materials segment offers ethylene, polyethylene, styrene, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries, as well as chlor-alkali, such as chlorine and caustic soda. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; PVC films for various inflatables, wallcovering, and tape and roofing applications; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; PVC compounds used in various housing, medical, and automobile products; and consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation operates as a subsidiary of TTWF LP.

Today's Trend

Westlake Corporation (NYSE: WLK) shares remain under pressure, trading well below their 50-day and 200-day moving averages. Recent analyst downgrades and a planned plant closure appear to be weighing on sentiment, although the company’s expansion into roofing could provide a longer-term offset.

Expansion into roofing: Westlake Royal Building Products agreed to purchase roofing assets to enter the standing-seam roofing market. The move broadens its building-products portfolio and could create new growth opportunities. Westlake Royal Building Products Enters Standing-Seam Roofing Market Through Purchase of Roofing Assets
Mixed analyst views: Coverage of Westlake shows conflicting sentiment. Truist retained a “buy” rating despite reducing its target to $90, while Wells Fargo maintained an “equal weight” rating and cut its target to $68. Analysts Have Conflicting Sentiments on These Materials Companies
Cologne PVC plant closure: Westlake plans to shut its Cologne, Germany, PVC facility and expects to record a substantial charge of approximately $205 million. The closure highlights weak industry conditions and creates a near-term earnings and cash-flow burden. Westlake plans Cologne PVC plant closure, sees $205 million charge
Broad price-target reductions: Wells Fargo cut its target from $89 to $68 and kept an “equal weight” rating. Mizuho lowered its target from $88 to $72 while retaining a neutral rating, and Citigroup also reduced its target. These revisions indicate analysts see less near-term upside amid difficult chemical-market conditions. Wells Fargo cuts target for Westlake stock Mizuho Cuts Price Target on Westlake

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Westlake (WLK)

About Westlake

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