09:05 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month price target by $38 to $170 using a forward P/E of 16x our '25 EPS estimate, which yields $152, and our DCF model, assuming a terminal growth rate of 2%, WACC of 8.2%, and 10-year FCF CAGR of 5.2%, which yields $189. We lower our '24/'25 EPS estimates by $0.24/$0.30 to $7.68/$9.49. Q1 sales fell 11% Y/Y on lower pricing, partially offset by higher volumes, led by pipe & fittings/siding & trim in Housing and Infrastructure Products (HIP) and chlorovinyls in Performance and Essential Materials (PEM). Price/volume by segment: PEM (65% of Q1 sales) -23%/+5% and HIP (35%) -10%/+13%. WLK posted Q1 EPS of $1.34, a $0.31 consensus beat. Despite lower sales (pricing), we upgrade to a Buy due to forecasted strong volumes and margin expansion, driven by WLK's cost-saving actions from acquisition synergies and automation efficiencies, which allowed HIP to reach record margins in Q1, despite weak pricing. We also like WLK's strong balance sheet, with current assets covering 2.5x current liabilities.