UBS Maintains a 'Buy' on Dow Chemical (DOW); Reducing Forecast on Softer Outlook

UBS maintains a 'Buy' on Dow Chemical (NYSE: DOW) price target cut $2 to $38.

UBS analyst says, "Global margins for olefins and polymers are cooling as polymer prices and spot olefin prices have softened starting in late 3Q. With lower prices for cracker co-products, heavy cracking margins are below break-even on a spot basis. Light margins have been hurt by higher prices for ethane in North America."

"We have trimmed our margins forecast for Dow’s Coatings & Infrastructure segment to 18% from 22% based in part to lower-than-expected 3Q results reported by a peer in its silicones business...We are trimming our 2012 estimate to $2.70 from $3.20 based on lower margins and volumes, and are trimming our 2013 estimate to $3.60 from $4.20."

For more ratings news on Dow Chemical click here and for the rating history of Dow Chemical click here.

Shares of Dow Chemical closed at $27.90 yesterday.

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