UPDATE: Deutsche Bank Raises Target to $35 on Dow Chemical

Deutsche Bank remains Hold-rated on Dow Chemical (NYSE: DOW) on a challenging Q1 outlook but raises its price target to $35 from $28 on improvement that should start in Q2

Deutsche Bank says, "Dow shares fell 1% following its Q4 release due, in our view, due to a cautious near term outlook as various headwinds seen in Q4 (Europe, weak electronics demand, high feedstock prices) are continuing in Q1. As a result, we estimate Q1 EPS of $0.45, well below consensus of $0.68. We expect earnings to start to improve in Q2 as demand picks up (led by the US and emerging regions) and Plastics margins begin to benefit from the recent sharp drop in ethane prices."

DOW closed at $33.54 a share on Thursday.