Bank of America Securities upgraded Dow Inc. to Neutral on Oct. 19, with The Fly reporting that the bank sees a risk Middle East instability may keep crude prices high, potentially helping stabilize earnings.
The Fly reported that the bank raised its price target to $31 from $29. The outlet also said a quicker end to the conflict could mean downside for Dow shares.
Dow’s second-quarter net sales increased 20% year over year to $12.1 billion. Local selling prices rose 20%, led by polyethylene, while currency provided a 1% benefit and sales volume declined 1%.
Sales in Dow’s Packaging & Specialty Plastics segment grew 27%, even as volume in the segment fell 4%. Dow cited planned maintenance as one cause of lower segment volume and said higher polyethylene prices benefited segment margins.
Dow has scheduled its third-quarter earnings webcast for 8 a.m. ET on Thursday, Oct. 22.
