Piper Jaffray Starts Dow Chemical (DOW) at Neutral

Piper Jaffray initiates coverage on Dow Chemical (NYSE: DOW) with a Neutral rating and a price target of $50.00.

Analyst Mike Ritzenthaler commented, "Beyond the debate about the impact of ethylene chain margin compression to Dow's 2015 earnings potential, we believe Dow will successfully persevere in its efforts to transition the portfolio from one of deep cyclicality with relatively limited pricing power to one of more differentiation and faster growth. The company's various growth capital projects, the Gulf Coast cost control/integration projects, and ongoing asset sales and corresponding capital allocation create a compelling backdrop for shares over the next several years. However, with sentiment on ethylene margin-driven names so tied to falling oil prices, and no signs of curtailment discipline from OPEC, we feel a better entry point may present itself within the next 4-6 months."

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 $43.43 yesterday.

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