3/10/2010- Morgan Stanley analysts are raising their basic plastics EBITDA forecasts for the Dow Chemical Company (NYSE:DOW) by 8% for Q1 and 5% for Q2 to reflect better operating conditions.
Analysts Paul Mann, Sophia Xia, and Charles Dan said, "We reiterate our OW rating on DOW, following our new ethylene analysis. We think higher ethylene margins will offset expected margin pressure from higher propylene prices. Global capacity shutdowns have resulted in significantly better ethylene margins in 1Q than we (and consensus) anticipated, and discussions with industry experts suggest 2Q will also be strong. Higher ethylene margins in 2010 should be a significant positive for Dow Chemicals."
Morgan Stanley sees fiscal 2010 EPS of $1.56, vs. consensus estimates of $1.49, and fiscal 2011 EPS of $2.78, vs. consensus estimates of $2.47.
Keywords: Dow Chemical finance stock market Business News smartrend
Ticker(s): DOW
