July 27 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
The stock's recent strength might let Dow retire some $4
billion of high-cost convertible preferred stock, it added.
(Reporting by Jonathan Spicer; Editing by Sandra Maler)