Dow Chemical initiated with "neutral"

03/29/07 - Hilliard Lyons

NEW YORK, March 29 (newratings.com) - Analyst Stephen A O'Neil of Hilliard Lyons initiates coverage of The Dow Chemical Company (DOW) with a "neutral" rating.

In a research note published yesterday, the analyst mentions that the company’s trough earnings are likely to be set at a higher level in view of a higher contribution from joint ventures, a better financial position and an expanded business. Volatility in Dow Chemical’s plastics and basic chemicals businesses is limited, since join ventures have been formed, according to Hilliard Lyons. The company’s latest business cycle may benefit from reduced raw material costs, the analyst adds.