Westlake price target raised to $153 from $134 at RBC Capital

RBC Capital analyst Arun Viswanathan raised the firm’s price target on Westlake to $153 from $134 and keeps a Sector Perform rating on the shares as part of a broader research note previewing Q1 results in Commodity Chemicals. Destocking has ended in most chains, but high interest rates and weak demand have persisted, the analyst tells investors in a research note. RBC further notes that it no longer expects three rate cuts from the Fed this year, warning that volume recoveries across consumer, auto, and construction could likely be slower, resulting in companies tempering FY24 guides. The firm adds however that it has raised its assumed EBITDA multiple on the stock to 8.5-times from 7.5-times, driving a higher price target, while noting that investors are beginnnig to give the company credit for its building products business.