UPDATE: Deutsche Bank Initiates Coverage of Westlake Chemical Partners LP

In a note issued Monday morning, Deutsche Bank initiated coverage on Westlake Chemical Partners LP WLKP with a Buy rating and a $40 price target.

Despite a 39 percent rise in price since its IPO on July 31, the team at Deutsche Bank believes Westlake's stock is still attractively priced based on exposure to the U.S. ethylene industry and "substantial", "high quality" growth opportunities.

The team noted that U.S. ethane prices have fallen 70 percent over the past three years, which has resulted in U.S. ethylene being 1/6 the cost of competing naphtha-based producers. The team forecasts this advantage lasting into the next decade.