Westlake price target lowered to $170 from $180 at Piper Sandler

Piper Sandler analyst Charles Neivert lowered the firm’s price target on Westlake to $170 from $180 and keeps an Overweight rating on the shares. The firm has updated its Westlake model based on the release of Q2 earnings, updated guidance and its own recent channel checks. Piper sees earnings growth that may exceed a number of peers based on the company’s ability to gain share in building products markets, despite some weakness in the overall housing market. However, the challenging economic conditions in the EU and the very weak growth prospects in China should be a drag on the company’s ability to raise prices and margins, especially in the vinyl chain which is tied to both the housing market and the sizable production capabilities in that chain, the firm adds.