Morgan Stanley Raises PT on The Dow Chemical Company to $48 (DOW)

Morgan Stanley is out with its report today on The Dow Chemical Company DOW, raising its PT from $45 to $48. In a note to clients, Morgan Stanley writes, "Rising petrochemical inflation a net positive Dow; raising our price target to $48. The company's cost-advantaged position in its US petrochemicals business stands to benefit from high feedstock inflation in Europe and Asia. We also expect margins to be better in Europe following aggressive petrochemical inflation. Consensus 2011 and 2012 EPS forecasts appear 20-25% too conservative. On our forecasts, Dow will achieve the elusive $4 / share in EPS in 2012, however the business mix may be somewhat different to that given during analyst presentations. On our estimates Basic Plastics (Petrochemicals) will account for 38% of Group EBITDA in 2011. At the time of posting, shares of DOW were trading pre-market at $37.18, up 1.53% from Wednesday's close.