JPMorgan upgraded Westlake Chemical (NYSE:WLK) to Neutral from Underweight with a price target of $90.00.
The firm said Westlake is now trading close to fair value. JPMorgan estimates Westlake’s mid-cycle EBITDA at about $2.2 billion.
The stock currently trades at $88.59, approaching JPMorgan’s $90 target. The company trades at an EV/EBITDA multiple of 20.83x based on last twelve months.
Analysts predict the company will be profitable this year after recent losses. JPMorgan expects Westlake to generate 3% of its share price in free cash flow in 2026 and 8% in 2027.
Domestic polyethylene price increases of $0.20 per pound have been proposed for May. Polyethylene prices have risen by $0.40 per pound over the past two months.
Westlake reported disappointing first-quarter earnings with EPS of -$0.77, missing the forecasted -$0.17. Revenue totaled $2.65 billion versus expected $2.78 billion.
