UPDATE: JPMorgan Upgrades Dow Chemical (DOW) to Overweight
JPMorgan upgraded Dow Chemical (NYSE: DOW) from Neutral to Overweight with a price target of $60 (prior $50). The change follows the release of Q2 results.
Analyst Jeffrey J. Zekauskas said, "We had downgraded Dow Chemical at the end of June, not for fundamental reasons, but because Dow can trade poorly when cyclical risks are larger. We were reluctant to add to Dow positions following the exit of Great Britain from the European Union, thinking that cyclical risks had simply risen too high. The reports of our chemical companies concerning order patterns and business conditions in July suggest that European recessionary conditions are not a base case, and that global demand is holding up generally well."
"We continue to believe that Dow/DuPont will be a large free cash generator over a longer period of time as Dow’s capital expenditures move substantially lower and the company benefits from significant capacity expansions and cost reduction efforts in the consolidation of Dow and DuPont," added the analyst.
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 $53.67 yesterday.