Dow: Jefferies downgrades stock
(CercleFinance.com) - Jefferies has downgraded its rating on Dow shares from "buy" to "hold", having slashed its target price for them from 71 dollars to 45 dollars, suggesting investors "Wait for trough multiples or "fish hooks" in the LEIs (leading economic indicators)" before investing in the stock.
"Demand risks, pressure from competitor capacity additions, and a flatter olefins cost curve will likely keep Dow range bound near-term," the broker says.
Jefferies also sees increased downside risk to the chemical company's stock as rising interest rates further erode customer confidence, and warns that the timing of the next trough is likely to be the key debate in 2023.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Demand risks, pressure from competitor capacity additions, and a flatter olefins cost curve will likely keep Dow range bound near-term," the broker says.
Jefferies also sees increased downside risk to the chemical company's stock as rising interest rates further erode customer confidence, and warns that the timing of the next trough is likely to be the key debate in 2023.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.