J.P. Morgan Comments on Dow Chemical After 2Q Results Released

J.P. Morgan has published a report on Dow Chemical

lowering the price target from $47.00 to $42.00. In the report, J.P. Morgan wrote, "Dow reported a respectable 2Q:11, sailing past the Scylla of raw material inflation with product prices 19% higher, and the Charybdis of demand risk, reporting 9% volume growth. We would expect more specialty strength in the 2H:11 as price increases initiated in the performance businesses in the spring roll through in the summer and fall; conversely, we would expect some contraction in the profits of the Basics (Plastics and Chemicals & Energy) businesses as ethylene and ethylene derivative prices move lower and chlor-alkali prices flatten out and perhaps trend lower. The net of these trends is little change[d] in our outlook." The analyst probably meant to highlight the company's heroic efforts when he referenced the two fictional, ancient sea monsters from