Bernstein believes that DuPont's decision to name Edward Breen its permanent CEO sends "a message of strong permanent leadership" that "increases confidence" in the company and removes an overhang on the name. The firm thinks the decision increases the chances of DuPont successfully combining with Dow Chemical (DOW), as it believes that Breen will receive the board's backing for any decision he makes about such a deal. The firm keeps a Market Perform rating on DuPont.
JPMorgan analyst Jeffrey Zekauskas upgraded Dow Inc. to Overweight from Neutral with a price target of $61, up from $55. The analyst says Dow is capable of outperforming because it is a beneficiary of higher oil prices, it has a "durable" 5% dividend yield, its value is sensitive to acceleration in global economic activity, and its downside risk is "cushioned by the existence of global political tensions." Dow benefits from a higher oil price because its raw materials slate is largely low-cost natural gas liquids, the analyst tells investors in a research note.
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here