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Investing.com - Truist Securities lowered its price target on Westlake Chemical (NYSE:WLK) to $90.00 from $94.00 on Monday, while maintaining a Buy rating on the stock. With the current stock price at $77.08, analyst targets range from $78 to $98, suggesting potential upside. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis.
The firm cited more muted earnings expectations for both the Performance & Essential Materials (PEM) and Housing & Infrastructure Products (HIP) segments as the primary reason for the adjustment to its 2025 and 2026 estimates.
The revised $90 price target reflects an 8.0x EV/EBITDA multiple on Truist’s updated 2026 estimates, representing a modest premium to the commodity chemical peer average of approximately 7.5x. Get deeper insights into Westlake’s valuation metrics and comprehensive analysis with a InvestingPro subscription, including access to detailed Pro Research Reports.
Truist Securities believes this premium valuation is justified by Westlake’s integration into the HIP segment, which provides earnings stability compared to the company’s PEM commodity chemicals business.
The firm noted that the HIP segment offers margin accretion relative to the PEM business, supporting the maintained Buy rating despite the reduced price target.
In other recent news, Westlake Corporation reported its financial results for the second quarter of 2025, revealing a net loss of $12 million, or $0.09 per share. The company achieved $3 billion in net sales during this period. Despite the loss, Westlake emphasized its operational improvements and cost-reduction efforts as part of its strategy to manage market challenges. Additionally, the company announced a regular quarterly dividend of $0.53 per share for the second quarter of 2025, payable on September 4, 2025, to stockholders of record as of August 19, 2025. In product news, Westlake Royal Building Products, a subsidiary of Westlake, expanded its Magnolia Collection of windows by introducing a new black frame option. This addition caters to the increasing consumer preference for darker window styles, which have become popular with the Modern Farmhouse design trend. These developments reflect Westlake’s efforts to adapt to market demands and maintain shareholder value.
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