
Westlake Chemical (WLK) Stock Forecast & Price Target
Westlake Chemical (WLK) Analyst Ratings
Bulls say
Westlake Corp's positive outlook is supported by a slight year-over-year increase in US housing starts, indicating a potential uptick in demand for its building products amid ongoing infrastructure spending. The company's ability to successfully engage in accretive mergers and acquisitions within its Housing and Infrastructure Products segment enhances its value-creation capabilities, positioning it well for future growth. Additionally, Westlake's robust cash balance provides it with the flexibility to pursue further expansion or return capital to shareholders, reinforcing its strong financial foundation despite current market challenges.
Bears say
Westlake Corp faces a challenging market environment characterized by declining US contract prices for polyvinyl chloride and a significant sales mix shift towards lower-margin products, resulting in a 19.7% EBITDA margin that has decreased by 4.2% year-over-year. The company is further impacted by weak US housing starts, which have fallen 7% year-over-year, particularly affecting single-family constructions, thereby dampening demand for its Housing and Infrastructure Products segment. Additionally, the outlook for Westlake's European operations appears risky due to weaker economic conditions, combined with potential margin pressures from fluctuating crude prices, leading to lowered EBITDA projections for 2025 and 2026.
This aggregate rating is based on analysts' research of Westlake Chemical and is not a guaranteed prediction by Public.com or investment advice.
Westlake Chemical (WLK) Analyst Forecast & Price Prediction
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