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What Are Analysts’ Recommendations on Dow Chemical?

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Analysts’ recommendation on Dow Chemical

With Dow Chemical (DOW) seeing an opportunity to grow in Saudi Arabia, analysts’ consensus increased the 12-month target price to $61.17 from $59.83 in October. However, analysts may not move Dow Chemical’s target price either way until a clear picture emerges on the merger between Dow Chemical and DuPont (DD). At this point, the European Commission is looking into the merger.

As of December 5, 2016, 20 brokerage firms were tracking Dow Chemical stock actively. Among them, 75% of the analysts recommended the stock as a “buy,” 20% recommended the stock as a “hold,” and the remaining 5% recommended the stock as a “sell.” Analysts’ consensus indicates a 12-month target price at $61.17 for Dow Chemical. It implies a return potential of 9.1% from its closing price of $56.06 on December 5, 2016.

Peer comparisons

As of December 5, 2016, 18 brokerage firms are actively tracking Eastman Chemical (EMN). Among them, 61% of the analysts recommended the stock as a “buy,” 33% recommended the stock as a “hold,” and the remaining 6% recommended the stock as a “sell.”

In Monsanto’s (MON) case, which is Dow Chemical’s agricultural segment peer, 58% of the analysts recommended the stock as a “buy,” 37% recommended the stock as a “hold,” and the remaining 5% recommended the stock as a “sell.”

ETF investment

Notably, investors can indirectly hold Dow Chemical by investing in the First Trust Indxx Global Agriculture ETF (FTAG). FTAG invested 52.3% of its portfolio in Dow Chemical as of December 5, 2016.

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