Dow Inc. downgraded to Hold from Buy at Fermium Research

On January 13, Fermium Research analyst Frank Mitsch downgraded Dow Inc. (DOW) to Hold from Buy with a price target of $60, up from $54. Though he has "steadfastly referred" to both Dow and LyondellBasell (LYB) as "simply dividend stocks" as he became more bearish on the fundamental outlooks for the ethylene chain, recent moves in two-year treasury notes have "materially closed the gap in terms of yield," Mitsch said. Dow shares are up 16% year-to-date despite an uncertain macro backdrop, an oversupplied olefins chain, lessened attractiveness on the dividend, and "concerning technicals," the analyst told investors.