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DOW on the Street: Analyst Recommendations ahead of the 2Q17 Earnings

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Jul. 25 2017, Updated 7:39 a.m. ET

Analyst views of Dow Chemical

On July 21, 2017, 20 analysts were tracking Dow Chemical (DOW) actively. Among these analysts, 80% recommended a “buy” for the stock, while 20% recommended a “hold.” None recommended a “sell.”

The analyst consensus indicates a target price of $72.22, implying a target return potential of 9.2% over the stock’s closing price of $66.14 on July 21, 2017.

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Why most analysts are leaning toward a “buy”

The acquisition of the remaining stake in Dow and Corning (GLW), the conditional approval from regulators across the globe for the merger between DuPont (DD) and Dow Chemical, and the continued investments in Saudi Arabia for the future revenue growth could have influenced different brokerage firms to recommend a ‘buy” on Dow Chemical.

Individual recommendations and target prices

RBC has remained positive on Dow Chemical, with a target price of  $76. This implies a return potential of 14.9% over the closing price of $66.14 on July 21, 2017.

Cowan and Company remained sluggish on Dow Chemical with a target price of $60.0. However, the stock is already trading 10.2% above its recommended target price on July 21, 2017.

Investors can indirectly hold Dow Chemical by investing in the First Trust Index Global Agriculture ETF (FTAG), which has 10.6% of its portfolio in DOW.  FTAG’s other holdings include Monsanto (MON), which had a weight of 9.0% in the fund on July 21, 2017.

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