Dow Chemical Upgraded by Goldman Sachs (DOW)

Goldman Sachs upgraded chemical company, The Dow Chemical Company(DOW) to a “Buy” on Tuesday.

The firm has upgraded DOW from “Neutral” to a “Buy,” and has increased the company’s price target from $32 to $36. This price target suggests a 19.4% increase over the stock’s current price of $29.

An analyst from the firm commented, “we are upgrading DOW to Buy after its shares (+6% YTD) have lagged ethylene peers WLK (+98%) and LYB (+66%) as well as the overall sector (+16%) and the S&P500 (+10%),” the analyst comments. “We believe the 2012 underperformance was due to deterioration in trends at DOW’s coatings, electronics, materials, and non-US ethylene businesses. It appears this weakness is now reflected in consensus 2012 EPS estimates, which YTD have fallen 34%. With the bad news now generally accepted we see potential for significant EPS growth in 2013-14 off of the lowered 2012 consensus estimate.”

Dow Chemical Company shares were up 21 cents, or 0.73% during premarket trading Tuesday. The stock is mostly flat YTD.

The Bottom Line
Shares of Dow Chemical (DOW) have a 4.45% dividend yield, based on last night’s closing stock price of $28.79. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $32 price level.

The Dow Chemical Company(DOW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 0.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here