Goldman Sachs reported on Monday that they have maintained their rating on chemical corporation, The Dow Chemical Company(DOW).
The firm has reaffirmed its “Buy” rating on DOW, and has increased its price target from $36 to $41. This price target suggests a 16.5% increase from the stock’s current price of $34.22.
An analyst from the firm commented, “in our opinion, despite a recent rally in the share price, investor perception on DOW remains anchored to several company-specific challenges in 2012 that are likely to abate in the coming year. Looking ahead, a combination of cost cuts, reduced downtime, and strategic expansions should easily deliver above-consensus EPS. In particular, a sizable recovery in its key ethylene-chain franchise should drive greater appreciation for DOW’s shale-gas credentials and role as the global leader in ethylene production. Also, with a nearly 4% current yield, the stock offers an attractive income stream to reward investors as they await confirmation of a profit recovery.”
The Dow Chemical Company shares were up 36 cents, or 1.06% during Monday afternoon trading. The stock has increased 6% in the past year.
The Bottom Line
Shares of Dow Chemical (DOW) have a 3.75% dividend yield, based on the latest intraday stock price of $34.15. The stock has technical support in the $30-$31 price area. If the shares can firm up, we see overhead resistance around the $36 price level.
The Dow Chemical Company is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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