Alembic Global Believes DOW Still Has Room to Grow

By Carrie Williams

In a report released today, Hassan Ahmed from Alembic Global reiterated a Buy rating on DOW Chemical Company (NYSE: DOW), with a price target of $85. The company’s shares closed last Friday at $64.03, close to its 52-week high of $64.50.

According to, Ahmed is a 3-star analyst with an average return of 9.6% and a 66.7% success rate. Ahmed covers the Basic Materials sector, focusing on stocks such as Westlake Chemical Corp, Westlake Chemical PRN, and LyondellBasell.

Currently, the analyst consensus on DOW Chemical Company is Moderate Buy and the average price target is $71.33, representing an 11.4% upside.

In a report issued on March 6, Jefferies also upgraded the stock to Buy with a $75 price target.

Based on DOW Chemical Company’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $13.02 billion and quarterly net profit of $53 million. In comparison, last year the company earned revenue of $11.46 billion and had a net profit of $3.59 billion.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. Last month, Ruth Shaw, a Director at DOW bought 4,154 shares for a total of $200,181.

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The Dow Chemical Co. manufactures and supplies products used primarily as raw materials in the manufacture of customer products and services. It serves the industries, including appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; house wares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment. The company operates through five segments: Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals and Performance Plastics. The Agricultural Sciences segment provides crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The Consumer Solutions segment consist three global businesses: Consumer Care, Dow Automotive Systems and Dow Electronic Materials. The Infrastructure Solutions segment comprises of an industry-leading portfolio of businesses utilizing advanced technology to deliver products such as architectural and industrial coating applications, building insulation, adhesives, microbial protection for the oil and gas industry, and water technologies. The Performance Materials & Chemicals segment comprises of five technology-driven, customer-centric global businesses that are advantaged through integration and driven by innovative technology and solutions: Chlor-Alkali and Vinyl, Chlorinated Organics, Epoxy, Industrial Solutions and Polyurethanes. The Performance Plastics segment is a leading lastics franchise, and is a market-oriented portfolio composed of five global businesses: Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons. The company was founded by Herbert Henry Dow in 1947 and is headquartered in Midland, MI.