Westlake:JP Morgan maintains Neutral rating with PT reduced to $73 from $75.

Westlake:JP Morgan maintains Neutral rating with PT reduced to $73 from $75.

Westlake Chemical Corporation (WLK) faced a significant change in analyst sentiment as JP Morgan lowered its rating to Neutral, reducing the price target from $75.00 to $73.00. This adjustment comes amidst a mixed landscape of analyst ratings and price targets, reflecting the complexity of navigating the current market conditions.

Westlake 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 [1]. Despite this, the company achieved $3 billion in net sales, with the HIP segment showing strong performance with $275 million in EBITDA. Analysts maintained a positive outlook, with Citi's Patrick Cunningham maintaining a Buy rating with a price target of $94.00 and Mizuho Securities also issuing a Buy rating, while KeyBanc maintained a Hold rating [1].

The company's stock remained stable at $66.21 per share in after-hours trading. However, the recent downgrade by JP Morgan, along with varying price targets from other analysts, indicates a level of uncertainty among investors. The average price target among analysts is $92.93, with one sell rating, six hold ratings, and eight buy ratings assigned to the company's stock [3].

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 a mixed outlook with varying ratings and price targets.

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. However, the recent downgrade by JP Morgan serves as a reminder of the potential risks and uncertainties in the market.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-westlake-chemical-reports-q2-2025-net-loss-93CH-4171107
[3] https://www.marketbeat.com/instant-alerts/westlake-nysewlk-price-target-lowered-to-9000-at-morgan-stanley-2025-08-06/