RBC Capital lowered the firm’s price target on Westlake to $170 from $174 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for Commodity Chemicals names. Earnings expectations in the second half of 2024 have come down further due to ongoing Europe weakness and unplanned outages throughout the quarter, and while construction demand should improve on interest rate cuts, the benefits are not likely to occur until mid-2025, the analyst tells investors in a research note. For Westlake, RBC is seeing weak market conditions across chlorovinyls, with slower demand growth post-COVID in Asia, consumer pressure in North America, and higher material costs as headwinds, though some recovery in construction in 2025 from lower rates could help stimulate demand for the segment, the firm added.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on WLK:
- Westlake management to meet with Piper Sandler
- Westlake upgraded to Overweight from Equal Weight at Barclays
- Westlake price target lowered to $170 from $180 at Piper Sandler
- Westlake upgraded to Outperform from Sector Perform at RBC Capital
- Westlake price target raised to $171 from $167 at BMO Capital