Analyst ups rating, price target on Dow Chemical
NEW YORK (AP) — Shares of The Dow Chemical Co. rose Tuesday after a Goldman Sachs analyst raised his rating on the chemical manufacturer on expectations of better demand in improving global economic conditions.
THE OPINION: Goldman Sachs analyst Robert Koort raised his rating on Dow Chemical to "Buy" from "Neutral" and his 12-month price target to $36 per share from $32.
Koort also increased his 2013 earnings per share estimate to $2.51 from $2.43. Analysts surveyed by FactSet, on average, predict 2013 earnings of $2.51 per share.
Dow Chemical has taken steps to cut costs as its business has been hurt in the slower global economy. It has restructured operations to eliminate jobs and facilities in an effort to make global operations more efficient.
In a research note to clients, Koort said he believes Dow Chemical "offers leverage to a global recovery" because its sales are spread across most geographic regions. The Midland, Mich., manufacturer also offers products for a wide range of industries, including housing, electronics, and automobile manufacturing.
THE STOCK: Shares of Dow Chemical rose 4 cents to end at $28.83 and added 8 cents in after-hours trading. The stock has ranged from $24.42 to $36.08 in the past 52 weeks.