Gilford Securities Maintains Hold on Dow Chemical
Gilford Securities has published a research report on Dow Chemical (NYSE: DOW) stating that the firm might upgrade its rating on the company should the debt reduction strategy become stronger.
In the report, Gilford Securities writes, "So far through 9 months of 2011, net debt and preferred has actually risen, from $20.8 bn to $21.4 bn, although it is down from $24.3 bn in 18 months. So we would like to see this number drop faster than $2 bn a year, especially when earnings are as strong as they have been. A second positive would be successful launch and greater visibility on the impressive new product pipeline. Innovation in electronics would include organic light-emitting diode for tablets and TV's; advanced semiconductor packaging; 193 nm photoresists; and CMP slurry pads. In agriculture, it includes Enlist glyphosate and 2, 4-D herbicide tolerance system for corn (2012-13) and soybeans (2014-15). Elsewhere, EVOQUE 2 for reducing TiO2 need by 20% for paint companies in the non-premium market, and POWERHOUSE solar shingles."
Gilford Securities maintains its Hold rating and $31 price target on Dow Chemical, which is currently trading up $0.52 from yesterday's $30.98 closing price.
