UBS Maintains a 'Buy' on Dow Chemical (DOW); Cutting Estimates on Second Half Headwinds
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Price: $35.70 -0.22%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade DOW Now!
UBS maintains a 'Buy' on Dow Chemical (NYSE: DOW) price target of $36.00 (from $38.00).
Analyst, Gregg A. Goodnight, said, "Dow Chemical had a tough second quarter due in part to currency headwinds (trimming 8c/sh) and the liquidation of expensive inventory. This material was acquired early in the quarter when oil prices were high, and liquidated late in the quarter as oil prices collapsed...management has increased its 2012 cost reduction target to $1.5 billion from $1.0 billion to improve near-term cash flow, anticipating that the current adverse macroeconomic conditions might sustain for 12 to 24 months. While longer-term projects like Sadara and the proposed propylene dehydro unit will be maintained, Dow is delaying any unnecessary addition of incremental capacity."
On expected weaker second half of 2012, FY12 EPS estimate cut from $2.38 to $2.00 and FY13 from $3.30 to $3.15.
For an analyst ratings summary and ratings history on Dow Chemical click here. For more ratings news on Dow Chemical click here.
Shares of Dow Chemical closed at $29.18 yesterday, with a 52 week range of $20.61-$36.90.
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Analyst, Gregg A. Goodnight, said, "Dow Chemical had a tough second quarter due in part to currency headwinds (trimming 8c/sh) and the liquidation of expensive inventory. This material was acquired early in the quarter when oil prices were high, and liquidated late in the quarter as oil prices collapsed...management has increased its 2012 cost reduction target to $1.5 billion from $1.0 billion to improve near-term cash flow, anticipating that the current adverse macroeconomic conditions might sustain for 12 to 24 months. While longer-term projects like Sadara and the proposed propylene dehydro unit will be maintained, Dow is delaying any unnecessary addition of incremental capacity."
On expected weaker second half of 2012, FY12 EPS estimate cut from $2.38 to $2.00 and FY13 from $3.30 to $3.15.
For an analyst ratings summary and ratings history on Dow Chemical click here. For more ratings news on Dow Chemical click here.
Shares of Dow Chemical closed at $29.18 yesterday, with a 52 week range of $20.61-$36.90.
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