03 April 2009 14:52 [Source: ICIS news]
TORONTO (ICIS news)--HSBC has raised its rating and target price for the shares of Dow Chemical following the completion of Dow’s acquisition of specialty chemicals producer Rohm and Haas, it said in a research note on Friday.
The London-based international bank raised its rating to “neutral,” from “underweight,” and it raised its target price to $10, from $5. Dow’s shares closed at $9.94 on Thursday in ?xml:namespace>
“We believe that with [Dow’s] asset sale process well underway and with the overhang of a dividend cut, equity issuance, and credit rating downgrade mostly lifted, the stock should start trading on fundamentals again,” the analysts said.
“We consider this price at the higher end of our and company expectations,” they said.
In a K+S conference call on Thursday, analysts said the price was surprisingly low.
($1 = €0.74)
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