Dow assets underappreciated, shares could rise more -Barron's
July 27 (Reuters) - Shares of Dow Chemical Co could keep rising due to an underappreciated base of assets and continued pressure from activist investor Daniel Loeb, Barron's newspaper reported in its July 28 edition.
Citing several projects in the company's pipeline, the paper suggested earnings could double by 2018 and the stock, now worth $53.71, could rise above $60 in a year while paying a dividend.
Dow "could be one of the industry's best growth stories," it said. And Loeb, who has urged the company to separate its commoditized raw materials business from that of specialty chemicals, "might be having some impact," it said.
Dow, which makes everything from insecticides to plastics, said last week it would raise about $1 billion from the sale of corporate assets and that it was reviewing joint ventures.
Barron's said the company's "underappreciated" asset base includes a petrochemical division that enjoys low costs for inputs.