UBS Maintains a 'Buy' on Dow Chemical (DOW); Cutting Estimates on Second Half Headwinds
Tweet
Share
E-mailGet Alerts DOW Hot Sheet
Price: $56.23 -1.32%
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Amazon.com (AMZN) PT Raised to $215 at UBS
- JPMorgan Upgrades Unilever Indonesia Tbk (UNVR:IJ) (UNLRF) to Neutral
- Sage Therapeutics (SAGE) PT Lowered to $18 at Truist Securities
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
