- Westlake Chemical (WLK +3.1%) is upgraded to Outperform from Sector Perform with a $59 price target, raised from $47, at RBC, which expects the stock will continue to march higher ahead of the pending $2.4B acquisition of vinyl maker Axiall.
- RBC believes the AXLL deal creates a new way to play chlor-alkali and that management will take full advantage of synergies the deal presents.
- The firm also notes WLK's financial prudence and strong balance sheet, and that while rising polyethylene prices are a near-term positive for the company, WLK is "the way to play" for investors who anticipate lower-for-longer ethane prices.