Mizuho analyst John Roberts initiated coverage of Westlake with an Outperform rating and $170 price target. The analyst does not see a near-term recovery in basic chemicals but believes there is limited downside in in the shares since demand has been recessionary for over a year. The firm believes building materials are near a cyclical low, given levels of housing affordability and new/existing mortgage rate spreads not seen in 40 years.
