BofA Keeps Buy on Westlake (WLK) but Warns of another Year of Commodity Oversupply

Westlake Corporation (NYSE:WLK) is included among the 14 Best Mid Cap Dividend Aristocrat Stocks to Buy Now.

On January 8, BofA analyst Matthew DeYoe slightly lowered Westlake Corporation (NYSE:WLK)’s price target to $82 from $83, while keeping a Buy rating on the stock. The analyst said the change was part of BofA’s broader refresh of price targets across the Chemicals names it covers.

BofA’s overall view on the sector remains cautious. The firm expects commodity chemicals to deal with another year of worsening oversupply, while specialty chemicals continue to operate in a choppy demand environment. It also described the agricultural setup as more uneven. That said, BofA noted there are still a few reasons to stay optimistic, pointing to potential catalysts such as PMI indicators turning more supportive, possible interest rate cuts, and the chance that China rationalizes industry capacity. Still, the firm warned that these drivers are fairly new and not yet dependable.

Separately, on January 5, Westlake Corporation (NYSE:WLK) announced it had completed its acquisition of the global compounding solutions businesses of the ACI/Perplastic Group. ACI, which is based in Portugal, is known for producing specialty materials, particularly for the wire and cable markets. Westlake said the deal expands Westlake Global Compounds’ footprint into Portugal, Romania, and Tunisia, while also adding to its existing presence in Mexico.

Jean-Marc Gilson, President and Chief Executive Officer of Westlake, made the following statement:

“The integration of ACI with Westlake’s compounding operations represents a strong strategic alignment, offering significant opportunities to further strengthen our Housing & Infrastructure Products (HIP) business. This acquisition will enhance the reach of Westlake Global Compounds and introduce new specialty products and advanced technologies to our portfolio.”

Westlake is a global manufacturer and supplier of materials and specialty products used across a wide range of everyday applications.

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Disclosure: None.