J.P. Morgan Comments on Dow Chemical After 2Q Results Released

J.P. Morgan has published a report on Dow Chemical DOW lowering the price target from $47.00 to $42.00. In the report, J.P. Morgan wrote, "Dow reported a respectable 2Q:11, sailing past the Scylla of raw material inflation with product prices 19% higher, and the Charybdis of demand risk, reporting 9% volume growth. We would expect more specialty strength in the 2H:11 as price increases initiated in the performance businesses in the spring roll through in the summer and fall; conversely, we would expect some contraction in the profits of the Basics (Plastics and Chemicals & Energy) businesses as ethylene and ethylene derivative prices move lower and chlor-alkali prices flatten out and perhaps trend lower. The net of these trends is little change[d] in our outlook." The analyst probably meant to highlight the company's heroic efforts when he referenced the two fictional, ancient sea monsters from The Odyssey. J.P. Morgan rated Dow Chemical an Overweight with a price target of $42.00. Dow closed Wednesday at $35.80.