Wells Fargo & Company Issues Pessimistic Forecast for Westlake (NYSE:WLK) Stock Price

Westlake (NYSE:WLK) had its price target lowered by Wells Fargo & Company from $110.00 to $89.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has an “equal weight” rating on the specialty chemicals company’s stock. Wells Fargo & Company‘s price target indicates a potential upside of 16.72% from the company’s current price.

WLK has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $115.00 price objective on shares of Westlake in a research report on Thursday, May 7th. The Goldman Sachs Group set a $85.00 price target on Westlake in a research report on Thursday, July 16th. Zacks Research lowered Westlake from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 21st. Truist Financial lowered their price objective on Westlake from $127.00 to $104.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Westlake in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $96.14.

Westlake Stock Down 5.4%

Shares of NYSE WLK traded down $4.38 during mid-day trading on Wednesday, reaching $76.25. 357,268 shares of the company were exchanged, compared to its average volume of 1,243,401. Westlake has a 1 year low of $56.33 and a 1 year high of $124.23. The firm has a 50-day moving average of $78.90 and a 200 day moving average of $94.12. The stock has a market cap of $9.77 billion, a price-to-earnings ratio of -6.00 and a beta of 0.63. The company has a quick ratio of 1.56, a current ratio of 2.17 and a debt-to-equity ratio of 0.56.

Westlake (NYSE:WLK) last posted its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.83 by $0.18. The company had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.24 billion. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The firm’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($1.11) earnings per share. On average, research analysts expect that Westlake will post 3.2 earnings per share for the current year.

Institutional Investors Weigh In On Westlake

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Orbis Allan Gray Ltd lifted its holdings in shares of Westlake by 12.1% in the 4th quarter. Orbis Allan Gray Ltd now owns 4,386,635 shares of the specialty chemicals company’s stock valued at $324,348,000 after buying an additional 472,224 shares during the period. Wellington Management Group LLP raised its position in Westlake by 7,239.1% during the fourth quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company’s stock valued at $312,080,000 after acquiring an additional 4,163,207 shares in the last quarter. Vanguard Group Inc. raised its position in Westlake by 13.9% during the fourth quarter. Vanguard Group Inc. now owns 3,917,329 shares of the specialty chemicals company’s stock valued at $289,647,000 after acquiring an additional 477,698 shares in the last quarter. Capital World Investors acquired a new position in Westlake in the fourth quarter valued at approximately $160,548,000. Finally, Dimensional Fund Advisors LP lifted its holdings in Westlake by 45.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,885,678 shares of the specialty chemicals company’s stock valued at $139,431,000 after acquiring an additional 585,438 shares during the period. 28.40% of the stock is owned by institutional investors and hedge funds.

Key Westlake News

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Earnings and revenue topped estimates. Westlake reported adjusted diluted EPS of $2.01 versus consensus estimates ranging from $1.83 to $1.93, while revenue reached $3.27 billion, above the approximately $3.24 billion estimate. EPS improved from a $1.11 loss in the year-earlier quarter. Westlake Tops Q2 Earnings Estimates
• Positive Sentiment: Profitability rebounded sharply. Net income attributable to Westlake was $260 million, or $2.01 per share, compared with a $142 million loss a year ago. EBITDA rose to $679 million from $340 million last year and $235 million in the first quarter, supported by higher prices, increased volumes and the company’s profitability-improvement plan, which targets a $600 million operating-income benefit. Westlake Second-Quarter Results
• Positive Sentiment: PEM delivered the biggest turnaround. Performance and Essential Materials operating income improved to $185 million from a $318 million loss, as average selling prices increased 14% and EBITDA reached $416 million. Westlake also generated $111 million of quarterly free cash flow, reduced debt by roughly $500 million and returned $99 million through dividends and share repurchases. Westlake Reports Higher Net Income and EBITDA
• Neutral Sentiment: Westlake Chemical Partners declared a $0.4714 quarterly distribution. The payment supports the broader Westlake group’s cash-generation profile, but it applies to affiliate WLKP, not directly to WLK. Westlake Chemical Partners Distribution
• Negative Sentiment: Risks remain. HIP operating income fell $10 million year over year as pricing and margins weakened, while slower housing activity and raw-material inflation could pressure results. Management also cited volatility tied to the Middle East conflict and global supply-demand conditions.

About Westlake

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.