Deutsche Bank Upgrades Dow Chemical Shares To Buy, Raises PT To $58


In a report issued today, Deutsche Bank analyst David Begleiter upgraded shares of Dow Chemical (NYSE:DOW) with a Buy rating and raised his price target to $58.

Begleiter noted, “We are upgrading Dow to Buy from Hold as we believe the risk/reward is attractive. Following the recent drop in oil and subsequent skepticism over the US ethylene cycle, Dow shares are down 13% from their Sept. high. Based on our lowered ‘15E EPS (to reflect the impact of lower oil prices), we believe there is 5% downside to the shares based on Dow trading at its 5 yr NTM P/E of 14x. In contrast, we believe there is 20%-plus upside should cycle concerns abate and Dow continue to execute (8 straight quarters of EPS growth). With 3 key projects on track for ’15 start- up (PDH, LA-3, Sadara), and valuation an attractive 14.6x ’15E, we are raising our PT $1 to $58, upside of 22%.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst David Begleiter has a total average return of 6.5% and a 66.7% success rate. Begleiter is ranked #554 out of 3339 analysts.

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