Dow Chemical "buy," estimates reduced

03/22/07 - BB&T Capital Markets

NEW YORK, March 22 (newratings.com) - Analysts at BB&T Capital Markets reiterate their "buy" rating on The Dow Chemical Company (DOW), while reducing their estimates for the company. The 12-month target price is set to $50.

In a research note published this morning, the analysts mention that media reports of the company being a takeover target for private equity or being in talks for a huge joint venture deal appear reliable. Dow Chemical has indicated that peak market conditions are expected to continue with a trough unlikely till 2010 or 2011. The EPS estimates for 2007 and 2008 have been reduced from $4.50 to $4.25 and from $4.50 to $4.25, respectively.