UPDATE: JP Morgan Upgrades Westlake Chemical Corporation to Overweight on EPS Upside

JP Morgan upgraded Westlake Chemical Corporation WLK from Neutral to Overweight and raised the price target from $76.00 to $100.00. JP Morgan commented, "Westlake's level of EPS should step up in 2013. The company is bringing on 240 million pounds of ethylene in 1Q:13. Current annual ethylene cash margins are roughly $0.25 per lb for 2013, implying incremental annual EBIT of $60 million. It is also starting up 350k tons of chlorine and 385k tons of caustic soda in 2H:13, which may deliver $100 million of EBIT in 2014. PVC margins should widen given a $0.03 price increase in February and with $0.05 likely for March. … Westlake's balance sheet is unlevered and its return on capital is above 13%. We think that is among the more attractively valued smaller capitalization chemical companies." Westlake Chemical Corporation closed at $86.22 on Thursday.