Shares of Dow Inc. rose 0.7% in morning trading Tuesday, after Argus Research analyst Bill Selesky turned bullish on the chemicals and specialty materials company, citing signs of increased demand and stronger pricing. Selesky raised his rating to buy from hold, and set his stock price target at $69, which is about 10% above current levels. “We expect Dow to benefit in the near term from stronger pricing for commodity chemicals and increased demand in North America and China, and are significantly boosting our EPS estimates for both 2021 and 2022,” Selesky wrote in a note to clients. “We also have a favorable view of Dow’s low cost structure, solid cash flow, declining capital spending requirements, and sustainable dividend, with a yield of about 4.6%.” Dow reported last week a first-quarter adjusted profit that more than doubled, and was well above expectations, helped by price gains across all operating segments. The stock has climbed 15.1% over the past three months, while the Dow Jones Industrial Average has advanced 12.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.