Research Alert: CFRA Cuts Rating On Westlake Corporation To Hold From Buy

12:45 PM EDT, 03/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $45 to $95 on a forward P/E of 12x our 2026 EPS view of $7.93 (cut $0.27), below the five-year average of 14.2x on weaker fundamentals compared to historical levels and expected ongoing demand headwinds. We cut our 2025 EPS estimate by $0.12 to $6.28. With tariff concerns lingering and expected lower demand in various end markets (e.g., new residential), as well as the appointment of RFK Jr. as U.S. Health Secretary, we have lowered our sales and EPS estimates for 2025/2026. We think WLK will see continued demand weakness in markets like new residential and auto, and believe the company faces serious long-term risk in its Performance and Essentials Materials segment (64% of sales) due to likely increased regulation and the shift away from plastic/plastic packaging. We also view shares as fully valued. That said, like WLK's strong balance sheet, with current assets covering 2.8x current liabilities and $4.4B in liquidity ($2.9B in cash, $1.5B in undrawn revolving credit).

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