Dow Chemical initiated with "peer perform" - update

09/25/07 - Bear Stearns

NEW YORK, September 25 (newratings.com) - Analyst Scott Burk of Bear Stearns initiates coverage of Dow Chemical Co (DOW) with a "peer perform" rating.

In a research note published this morning, the analyst mentions that the company plans to expand the non-cyclical portion of its business by growing the agricultural and performance segments as well as ramping up its market facing product lines. Dow Chemical’s margins and EPS may decline in the forthcoming few years due to the anticipated trough in the ethylene commodity cycle, the analyst says. The company has a healthy dividend yield of 4%, Bear Stearns adds.