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Reading: BofA Retains Purchase on Westlake (WLK) however Warns of one other 12 months of Commodity Oversupply
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Money

BofA Retains Purchase on Westlake (WLK) however Warns of one other 12 months of Commodity Oversupply

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Last updated: January 16, 2026 11:59 am
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BofA Retains Purchase on Westlake (WLK) however Warns of one other 12 months of Commodity Oversupply
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Westlake Company (NYSE:WLK) is included among the many 14 Finest Mid Cap Dividend Aristocrat Shares to Purchase Now.

BofA Retains Purchase on Westlake (WLK) however Warns of one other 12 months of Commodity Oversupply

On January 8, BofA analyst Matthew DeYoe barely lowered Westlake Company (NYSE:WLK)’s worth goal to $82 from $83, whereas maintaining a Purchase score on the inventory. The analyst stated the change was a part of BofA’s broader refresh of worth targets throughout the Chemical compounds names it covers.

BofA’s total view on the sector stays cautious. The agency expects commodity chemical compounds to take care of one other 12 months of worsening oversupply, whereas specialty chemical compounds proceed to function in a uneven demand surroundings. It additionally described the agricultural setup as extra uneven. That stated, BofA famous there are nonetheless a couple of causes to remain optimistic, pointing to potential catalysts comparable to PMI indicators turning extra supportive, attainable rate of interest cuts, and the prospect that China rationalizes trade capability. Nonetheless, the agency warned that these drivers are pretty new and never but reliable.

Individually, on January 5, Westlake Company (NYSE:WLK) introduced it had accomplished its acquisition of the worldwide compounding options companies of the ACI/Perplastic Group. ACI, which relies in Portugal, is thought for producing specialty supplies, significantly for the wire and cable markets. Westlake stated the deal expands Westlake International Compounds’ footprint into Portugal, Romania, and Tunisia, whereas additionally including to its current presence in Mexico.

Jean-Marc Gilson, President and Chief Govt Officer of Westlake, made the next assertion:

“The mixing of ACI with Westlake’s compounding operations represents a robust strategic alignment, providing vital alternatives to additional strengthen our Housing & Infrastructure Merchandise (HIP) enterprise. This acquisition will improve the attain of Westlake International Compounds and introduce new specialty merchandise and superior applied sciences to our portfolio.”

Westlake is a world producer and provider of supplies and specialty merchandise used throughout a variety of on a regular basis functions.

Whereas we acknowledge the potential of WLK as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back danger. Should you’re on the lookout for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

READ NEXT: 12 Finest Dow Shares to Purchase in 2026 and 13 Finest Shopper Staples Dividend Shares to Make investments In Now

Disclosure: None.

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