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.
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