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What Are Analysts’ Recommendations on Dow Chemical?

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Analysts’ recommendations

As of March 21, 2017, 21 brokerage firms were actively tracking Dow Chemical (DOW) stock. Among them, 76% of the analysts recommended the stock as a “buy,” 24% analysts recommended the stock as a “hold,” and none of the analysts recommended the stock as a “sell.”

Analysts’ consensus indicates a 12-month target price of $70 for Dow Chemical, which implies a return potential of 11.0% from the closing price of $63.08 on March 21, 2017.

Analysts’ consensus

Dow Chemical’s better-than-expected 4Q16 earnings, positive business development in Saudi Arabia, and continued hopes of the DuPont (DD) merger getting approval influenced analysts. Most analysts recommended a “buy” on Dow Chemical.

Target prices

Below are some of the recommended target prices from well-known brokerage firms for Dow Chemical:

  • On March 6, 2017, Jefferies rated Dow Chemical as a “buy” with a target price of $75. It implies a 12-month potential return of 19% over the closing price of $63.08 March 21, 2017.
  • On January 30, 2017, Barclays (BCS) rated Dow Chemical as “equal weight” with a target price of $65. It implies a 12-month potential return of 3.0% over the closing price of $63.08 on March 21, 2017.
  • On January 27, 2017, Deutsche Bank (DB) rated Dow Chemical as a “buy” with a target price of $70. It implies a 12-month potential return of 11.0% over the closing price of $63.o8 on March 21, 2017.

Notably, investors can indirectly hold Dow Chemical by investing in the First Trust Indxx Global Agriculture ETF (FTAG). FTAG invested 10.4% of its portfolio in Dow Chemical as of March 21, 2017. In the next part, we’ll look at Dow Chemical’s latest valuations.

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