UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Dow Chemical Company

In a report published Friday, Deutsche Bank reiterated its Hold rating on Dow Chemical Company DOW, and raised its price target from $31.00 to $35.00. Deutsche Bank noted, “Upstream performing as expected on cheap ethane. Valuation fair at 15x '13E - Dow shares fell 7% following a modest ($0.01) Q4 miss amid heightened expectations following strong Q4 ethylene margins. Exacerbating the miss was a muted demand outlook and near-term propylene price pressures. While the ethylene margins did come through in Dow's results (Perf Plastics EBITDA +24%), its downstream businesses, led by Perf Matl's (EBITDA -22%) and Coatings (EBITDA -46%), continue to disappoint amidst weak demand trends. While we are encouraged by Dow's internal actions ($2.5B in interventions), its renewed focus on ROC and signs of improvement in China, with downstream units underperforming and valuation a fair 15.3x '13E EPS, Hold.” Dow Chemical Company closed on Thursday at $32.20.