As previously reported, Morgan Stanley analyst Vincent Andrews downgraded Dow Inc. (DOW) to Equal Weight from Overweight with an unchanged price target of $58. Concurrently, Andrews resumed coverage of LyondellBasell (LYB) with an Overweight rating and $110 price target. Though he notes his price target for LyondellBasell, with 19% upside, "is generally not enough for us to advise putting new money to work in a commodity chemical stock," Andrews believes investors should own a commodity name in 2020 and said the polyethylene chain is where he sees the best commodity chemical risk/reward. Consensus expectations for Dow imbed much more improvement in 2020 than they do for LyondellBasell, added Andrews, who also views Lyondell's ability to keep buying back stock and possibly raise its dividend as another key differentiator between the two stocks in 2020.

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.

JPMorgan upgraded Dow Inc. to Overweight from Neutral with a $61 price target.

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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