WLK - Crude Oil's 20% Jump Positively Shifts Base Chemicals Analyst Upgrades DOW WLK And LYB | Benzinga
KeyBanc Capital Markets analyst Aleksey Yefremov upgraded Dow Inc. (NYSE: DOW), Westlake Corp (NYSE: WLK) , and LyondellBasell Industries NV (NYSE: LYB) to Sector Weight from Underweight.
The analyst notes a 20%+ rise in crude oil over the last three months has increased the floor prices for PE, PVC, and other base chemicals.
The analyst sees lower downside risk for the stocks as higher naphtha costs force competitors in Asia and Europe to raise prices.
Also, integrated ethylene/PE margins in Asia are close to cycle lows on higher crude oil prices, making the further decline in PE prices unlikely, notes the analyst.
Yefremov sees PE markets continue to be oversupplied in FY24 but thinks ...