Citi Turns Neutral on Westlake (WLK), Citing Fading Momentum in PVC Pricing

Westlake Corporation (NYSE:WLK) is included among the 10 Oversold Dividend Growth Stocks to Buy.

Citi Turns Neutral on Westlake (WLK), Citing Fading Momentum in PVC Pricing

On May 27, Citi downgraded Westlake Corporation (NYSE:WLK) to Neutral from Buy. It lowered the stock’s price target to $95 from $125. The firm cited a slower-than-expected recovery in the housing market and what it described as “less favorable” polyvinyl chloride fundamentals. Citi noted that prices in Asia have started to normalize amid weak construction activity and ample supply. As a result, the firm sees few catalysts that could sustain the current momentum in polyvinyl chloride pricing. Given those conditions, Citi expects limited supply-driven upside for Westlake’s pricing going forward.

Earlier in the month, on May 18, JPMorgan analyst Jeffrey Zekauskas upgraded Westlake to Neutral from Underweight while maintaining a $90 price target. In a research note, the analyst said the shares were trading close to fair value. JPMorgan expects Westlake to generate free cash flow equivalent to about 3% of its share price in 2026 and 8% in 2027. The firm also pointed out that polyethylene prices had increased by 40 cents per pound over the previous two months, outpacing export prices. Based on that trend, JPMorgan said that “we would be surprised to find the May price increase successful.”

Westlake Corporation (NYSE:WLK) manufactures and supplies a wide range of materials and products used in everyday applications. The company operates across Asia, Europe, and North America, serving markets that include housing and construction, packaging, healthcare, automotive, and consumer products.

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