Update: J.P. Morgan Raising Price Target On Westlake Chemical Corp. (WLK)

J.P. Morgan is raising its price target on shares of Westlake Chemical Corp.

to $48 from $33, but is keeping its Neutral rating. In a note to clients, J.P. Morgan writes, "Westlake posted solid fourth quarter results stemming from strong olefins margins and healthy pricing in its niche polyolefin products. We believe that Westlake's average fourth quarter ethylene margin likely widened versus third quarter levels due to $0.09 in successful producer price increases during the quarter. Effective domestic ethylene operating rates remained high in the fourth quarter of 2010 due to competitor production outages. We expect Westlake's Olefins segment to continue to generate outsized profits due to the favorable spread between North American natural gas values and global crude oil prices. Vinyls segment results remain depressed due to lackluster demand conditions and low operating rates, though strong export trends may benefit PVC operations in 2011.Raising PT to $48, maintaining Neutral." Shares of WLK lost $1.08 yesterday to close at $46.73, a loss of 2.26%.