UBS Lowers Price Target on Westlake (WLK), Keeps Buy Rating

On May 28, UBS lowered the firm’s price target on Westlake Corporation (NYSE:WLK) from $118 to $101, while keeping a Buy rating on the stock. The adjustment reflects the near-term challenges for the company’s Performance and Essential Materials (PEM) Segment.

A closeup of a Petrochemical product being inspected for quality assurance.

The company reported its fiscal first quarter results for 2025 on May 2. The company reported net sales of $2.85 billion down from $2.98 billion a year ago. The PEM segment faced headwinds from a strong run-up in feedstock and increased energy prices which led the net sales down from $1.91 billion in Q1 2024 to $1.85 billion in the recent quarter. The higher cost also led the EBITDA of the PEM segment to be $180 million lower than the previous year.

The firm still sees Westlake Corporation’s (NYSE:WLK) commodity products as favorably priced in the market. However, UBS anticipates continued challenges for the near-term at least thereby leading to a reduced price target.

Westlake Corporation (NYSE:WLK) is an international manufacturer of materials and products. It provides building blocks for major industries including housing and construction. Packaging, healthcare, automotive, and consumer goods. It operates through two main segments: Performance and Essential Materials (PEM) and Housing and Infrastructure Products.

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