Dow Chemical (DOW) continues to make progress in delivering cost synergies from the Rohm & Haas (ROH) acquisition, which is expected to consolidate the higher margin and higher growth specialty businesses while reducing volatility in earnings and cash flow.Dow is executing planned divestitures and has fully paid off its burdensome bridge loan related to the ROH acquisition. Dow completed the year ahead of its cost reduction and synergy goals with an end-of-year run-rate of more than $1.7 billion.
The company recently provided an update on its Advanced Material division, where it expects revenue growth of 10% per annum that would drive profitability. Therefore, we upgrade Dow to Outperform from our previous Neutral recommendation.
Dow Chemical (DOW) : FULL ANALYST REPORT
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