Bank of America has raised its rating on Westlake (WLK, Financial) from Neutral to Buy, despite reducing the price target from $116 to $103. The upgrade highlights two significant advantages for Westlake: its less cyclical building products division, expected to surpass the petrochemical segment in EBITDA generation this year, and its robust balance sheet, which is considered exceptional by industry standards.
Although BofA has significantly lowered its earnings forecasts for Westlake, the firm suggests that current market conditions, characterized by compressed valuations, could present Westlake with valuable opportunities for capital deployment and potential long-term earnings growth. This strategic outlook, BofA argues, could outweigh any negative impact from the anticipated decline in earnings expected in 2025 and 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Westlake Corp (WLK, Financial) is $122.44 with a high estimate of $135.00 and a low estimate of $105.00. The average target implies an upside of 35.88% from the current price of $90.11. More detailed estimate data can be found on the Westlake Corp (WLK) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Westlake Corp's (WLK, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Westlake Corp (WLK, Financial) in one year is $117.99, suggesting a upside of 30.94% from the current price of $90.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Westlake Corp (WLK) Summary page.
