Citi retains “buy“ for DOW, raises target price

Citi maintains its “buy“ rating for Dow Chemical Co (NYSE: DOW), while raising its earnings estimates for the company. The target price for DOW has been raised from $29 to $35.

According to Citi, DOW has recovered strongly after experiencing credit crisis with the help of its heavy and rapid cost cutting initiatives. The performance of DOW’s two early cycle businesses, electronics and coatings, have improved this year, with a sequential rise in electronics volumes and coatings volumes, Citi said. Citi considers DOW as an early-cycle recovery play. Citi has raised its EPS estimate for 2010 from $1.55 to $1.57.