Analyst recommendations for Dow Chemical
As of October 18, 2016, 19 brokerage firms were actively tracking Dow Chemical (DOW) stock. All of them have revisited their recommendations after the company announced its 2Q16 earnings on July 28, 2016.
About 63.0% of these analysts have recommended a “buy” for DOW stock, while the remaining 37.0% have recommended a “hold.” None of them have recommended a “sell.” The analysts’ consensus indicates a 12-month target price of $60.30, which implies a return potential of 12.3% from DOW’s closing price of $53.69 on October 18, 2016.
Brokerage firm recommendations and targets
Below are some of the recommendation by brokerage firms for Dow Chemical (DOW):
- On October 14, 2016, Wells Fargo Securities rated Dow Chemical “outperform” but didn’t provide a price target.
- On October 10, 2016, UBS (UBS) gave Dow Chemical a “buy” rating and a price target of $62, which implies a 12-month potential return of 15.5% over the October 18, 2016, closing price of $53.69.
- On September 9, 2016, JP Morgan (JPM) gave Dow Chemical an “overweight” rating with a price target of $60, which implies a 12-month potential return of 11.7% over the October 18, 2016, closing price of $53.69.
- On July 29, 2016, Credit Suisse (CS) rated Dow Chemical an “outperform” with a 12-month target price of $61, which implies a potential one-year return of 13.6% compared to $53.69, the last traded price as of October 18, 2016.
You can indirectly hold Dow Chemical by investing in the iShares US Basic Materials ETF (IYM), which has invested 11.2% of its portfolio in Dow Chemical as of October 18, 2016.
In the next part, we’ll look at the latest Dow Chemical valuations.