Citi Analyst Gives Westlake Corporation Buy Rating with $94 Price Target

Citi analyst Patrick Cunningham maintained a Buy rating on Westlake Corporation with a price target of $94.00. Cunningham has a 36.36% success rate and focuses on Basic Materials stocks. Mizuho Securities also issued a Buy rating, while KeyBanc maintained a Hold. WLK has a market cap of $10.65B and a P/E ratio of -154.54.

Westlake Chemical Corporation (WLK) reported a net loss of $12 million for the second quarter of 2025, driven by soft global manufacturing activity and weak construction trends in the PVC market. Despite the loss, the company achieved $3 billion in net sales, with the HIP segment showing strong performance with $275 million in EBITDA [1].

The company's stock remained stable at $66.21 per share in after-hours trading. Analysts maintained a positive outlook, with Citi's Patrick Cunningham maintaining a Buy rating with a price target of $94.00. Mizuho Securities also issued a Buy rating, while KeyBanc maintained a Hold rating [1].

Westlake Chemical highlighted operational improvements and cost-reduction efforts as part of its ongoing strategy to navigate market challenges. The company implemented a $75 million cost reduction in Q2 2025, with plans for an additional $200 million by 2026. The company's Altman Z-Score of 2.51 and analyst price targets ranging from $75 to $99 indicate moderate financial stability [1].

Key Takeaways:
- Net loss of $12 million in Q2 2025.
- Net sales of $3 billion.
- HIP segment EBITDA of $275 million on $1.2 billion sales.
- Stock price stable at $66.21.
- Analysts maintain positive outlook with Buy ratings from Citi and Mizuho Securities.

Westlake Chemical is navigating a challenging market environment with strategic cost reductions and a focus on long-term growth in its HIP segment. The company's stable stock price reflects investor confidence in its ability to manage current challenges and capitalize on future opportunities.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-westlake-chemical-reports-q2-2025-net-loss-93CH-4171107