Westlake downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Arun Viswanathan downgraded Westlake to Sector Perform from Outperform with a price target of $128, up from $125. The analyst cites the company’s Q4 earnings miss and continued weak demand, particularly in housing and construction, behind the downgrade. While caustic has been strong, higher chlorine rates could lead to summer caustic price declines, the analyst tells investors in a research note. RBC adds that it believes this could offset some of Westlake’s cyclical upside and sees only 15%-20% uplift in the company’s EBITDA from Q1 trough levels to Q3.