Jefferies Initiating Coverage on Dow Chemical

Jefferies & Co. is out with a research report on Dow Chemical (NYSE: DOW) and is initiating coverage with a Hold rating and a $27 price target on shares.

In a note to clients, Jefferies & Co. writes, "Dow aims to be a better shepherd of capital and assets. The strategy is coherent, but implies choices the market will debate: a tough way to expand valuation multiples. With the ethylene peak still ahead, the market is offering a cyclical trade. We risk being too cute on timing, but we think there will be a better entry point within 6 months. We initiate coverage with a Hold and $27 price target."

Shares of DOW closed at $23.74 yesterday.