Westlake price target raised to $133 from $127 at RBC Capital

RBC Capital analyst Arun Viswanathan raised the firm’s price target on Westlake to $133 from $127 and keeps a Sector Perform rating on the shares. The company’s Q2 results were lower than expected, and lower caustic and epoxy prices are being offset by some improvement in HIP demand, indicating that the second half of the year will remain challenged, the analyst tells investors in a research note. The firm adds however that its higher price target reflects the roll forward in its valuation model, with EBITDA multiple of 5.5-times down from prior assumption of 6.0-times.