Westlake Chemical (WLK) Stock Forecast & Price Target

Westlake Corp has demonstrated strong growth potential, with FY24 year-over-year volumes increasing by 6% and 8% in its Housing and Infrastructure Products (HIP) and Performance and Essential Materials (PEM) segments, respectively. The company is expected to benefit from infrastructure spending, which has positively impacted its pipes and fittings business, enhancing its competitive position in the market. Projections indicate consistent revenue growth, with anticipated increases of 2-7% in HIP sales and improved EBITDA margins, alongside a favorable outlook for PVC prices, reinforcing a positive financial trajectory moving forward.

Westlake Corporation is facing significant headwinds that negatively impact its financial outlook, primarily due to declining margins and reduced demand across key segments. Management's conservative guidance projects a margin decrease to 20-22%, down from 24.3% in 2025, while EBITDA estimates have been lowered for both Q1 and FY25, reflecting broader weakness in the chlorovinyls market and sluggish consumer demand. Additionally, average prices within its Performance and Essential Materials segment have decreased, with a forecasted weak Q1 and only a modest recovery anticipated in FY24, further contributing to a challenging operating environment.