FINWIRES · TerminalLIVE
FINWIRES

$WLK

11 stories mentioning WLKUpdated 12d ago

Every FINWIRES story that references WLK, newest first.

Commodities

Chemical Prices Gain as US-Iran Fighting Resumes, TPH Says

Prices for several key chemicals climbed last week as renewed fighting between the US and Iran and the effective closure of the Strait of Hormuz fueled supply concerns, TPH Energy Research analyst Matthew Blair said on Tuesday.US polyethylene prices rose 4 cents per pound to 44 cents/lb after trading within 1 cent of pre-conflict levels over the previous two weeks. Demand may also have been supported by stronger US consumer spending, with June retail and food services sales increasing 7% year over year.US methanol prices gained $20 per tonne to $451/tonne, extending their premium to $116/tonne above pre-conflict levels. Blair said several Iranian utility suppliers that were damaged during the earlier phase of the conflict in the second quarter have yet to resume normal operations. He said it was a factor expected to constrain the country's methanol production.MTBE posted the strongest gains, rising 30 cents to $3.41 per gallon, leaving prices $1.30/gal above pre-conflict levels. The increase comes as China's MTBE operating rates have declined in recent weeks due to planned maintenance, tightening supply.The price moves are broadly positive for major chemical producers. Higher polyethylene prices are supportive for Dow (DOW), LyondellBasell (LYB), and Westlake (WLK), while stronger methanol prices benefit Methanex (MEOH) and LyondellBasell. Higher MTBE prices also provide an earnings tailwind for LyondellBasell.Price: $31.07, Change: $+0.70, Percent Change: +2.29%

$DOW$LYB$MEOH$WLK
Commodities

Westlake's Q2 Earnings to Surge on Robust PE, PVC Prices Amid Iran Conflict, TPH Says

Westlake (WLK) is poised for a rebound in Q2 earnings as supply disruptions stemming from the Middle East conflict boosted prices for polyethylene, PVC, and caustic soda, TPH Energy strategists said in a note on Wednesday, although profit is still projected to fall short of Wall Street estimates.Matthew Blair, analyst at TPH Energy, raised his estimate for Westlake's Q2 adjusted EBITDA to $608 million from $506 million, a significant recovery from $198 million in Q1 excluding inventory-related impacts. The forecast, however, remains below the consensus estimate of $645 million.The company's Performance and Essential Materials segment is projected to account for the bulk of the improvement, with TPH projecting EBITDA of $406 million.Global outages and supply disruptions stemming from the Middle East conflict lifted prices across key products, particularly polyethylene, where US contract and spot prices are estimated to have risen by 34 cents and 26 cents per pound, respectively, from the previous quarter.TPH said PVC prices also strengthened, with US contract and spot prices expected to rise by about 9 cents a pound despite Chinese carbide-based producers maintaining high operating rates.Caustic soda markets saw additional support, with US contract prices rising by about $20 per metric ton and spot prices climbing by roughly $60 per ton.The bank said lower feedstock costs, especially for US ethane and natural gas, combined with higher operating rates, further improved margins. Westlake's PEM unit is forecast to generate more earnings in Q2 alone than it did in all of 2025.However, TPH was more cautious on the company's Housing and Infrastructure Products segment, where it forecasts EBITDA of $227 million.Westlake recently indicated that results would likely come in at the lower end of its full-year revenue and margin guidance ranges. Demand indicators have also weakened, with US housing starts falling to their lowest level in five years in May and the Architecture Billings Index declining amid elevated mortgage rates and rising construction costs.Higher PVC contract prices are also expected to weigh on margins in the quarter, the bank said in a note.Going forward, TPH expects profitability to moderate in Q3 as market conditions normalize. The brokerage forecasts EBITDA of $529 million, below the consensus estimate of $652 million.Spot prices for US PVC and polyethylene are currently about 6 cents and 13 cents a pound, respectively, TPH said, below second-quarter averages, while operating rates are expected to ease as supply flows recover.Price: $74.56, Change: $-1.92, Percent Change: -2.51%

$WLK
Wire

Westlake Acquires PVC Production Site in Germany

Westlake (WLK) said Monday its German unit, Westlake Vinnolit, has closed the acquisition of a polyvinyl chloride and vinyl chloride monomer production site in Wilhelmshaven, Germany.The plant, which was in insolvency administration, has the capacity to produce 380,000 metric tons of PVC annually, it said.Price: $87.80, Change: $-0.70, Percent Change: -0.80%

$WLK
Wire

UBS Adjusts Westlake Price Target to $117 From $130, Maintains Buy Rating

Westlake (WLK) has an average rating of overweight and mean price target of $116.88, according to analysts polled by FactSet.Price: $84.10, Change: $-1.15, Percent Change: -1.35%

$WLK
Research

Citigroup Downgrades Westlake to Neutral From Buy, Adjusts Price Target to $95 From $125

Westlake (WLK) has an average rating of overweight and mean price target of $116.88, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

$WLK
Wire

Westlake Shares Rise After Upgrade From JPMorgan

Westlake's (WLK) shares were up more than 3% in Monday trading after JPMorgan upgraded the company's stock to neutral, with a price target of $90.Trading volume stood at over 750,000 shares compared with a daily average of roughly 1.3 million.Price: $91.46, Change: $+2.87, Percent Change: +3.24%

$WLK
Wire

Westlake Likely to Benefit From Higher Prices, Lower Costs, RBC Says

Westlake (WLK) is expected to benefit from cost reductions and pricing actions, RBC Capital Markets said in a note Friday.The report pointed to "solid" order books into Q2, with price increases offsetting higher cost, albeit with some lags."Additionally, WLK's cost reductions and pricing actions should create further uplift into Q3," the report said.The note also said the company remains confident in its ability to raise EBITDA by about $600 million from a year ago, which could rise further on an extended Hormuz closure.RBC kept its outperform rating while lowering its price target to $130 from $145.Price: $98.28, Change: $+4.43, Percent Change: +4.71%

$WLK
Research

Research Alert: CFRA Reiterates Sell Rating On Shares Of Westlake Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target by $22 to $83 using an EV/EBITDA multiple of 7.0x, a discount to the three-year average of 8.7x, on weaker fundamentals and continued overcapacity/demand weakness in various key end markets. Our EBITDA estimates are $1.75B in 2026 and $1.90B in 2027. We increase our 2026 EPS estimate by $2.19 to $2.23 and 2027's by $2.12 to $3.60. We remain cautious on the sustainability of current PEM pricing momentum, as the sharp improvement is largely due to Middle East supply disruptions rather than fundamental demand recovery, creating downside risk if geopolitical tensions ease. The HIP segment's guidance revision to the lower end of the range reflects our concerns about housing affordability headwinds, though infrastructure and data center demand provides a partial offset. Near-term margin compression in HIP from PVC cost/price timing lags and persistent uncertainty around housing starts (mixed signals with permits at 1.3M vs. starts at 1.5M) warrant our below-consensus EBITDA estimates.

$WLK
Research

JPMorgan Downgrades Westlake to Underweight, Price Target is $90

Westlake (WLK) has an average rating of overweight and mean price target of $120.69, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

$WLK
Research

Research Alert: Wlk Q1: Double Miss On Weak Volumes

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:WLK reported Q1 sales of $2.65B, missing consensus by $130M, and an adjusted loss of $0.77 per share versus expected $0.24, with sales up 5% sequentially but down 7% Y/Y. Lower pricing and reduced volumes reflected persistent industry headwinds. We believe WLK faces structural challenges in PEM, where EBITDA margins remained depressed at just 2% despite sequential improvements, while HIP showed resilience with stable sales and strong 19% EBITDA margins. Management expects meaningful PEM margin expansion through summer 2026, driven by higher global feedstock costs from the Hormuz closure while North American natural gas remains advantageously priced. The company maintains a solid balance sheet with $2.5B cash against $5.6B debt, though operating cash flow was negative $94M on seasonal working capital build. We expect continued infrastructure and data center demand to benefit HIP, while residential construction headwinds from elevated rates will likely persist.

$WLK
Research

Deutsche Bank Downgrades Westlake to Hold From Buy, Lifts Price Target to $120 From $115

Westlake (WLK) has an average rating of overweight and mean price target of $120.25, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

$WLK

Track with the FINWIRES app suite

FolioX
FolioX
Track WLK in your portfolio
WheelAI
WheelAI
Analyze WLK options with the wheel strategy
StockInsider
StockInsider
See market sentiment on WLK