Dow May Divest Chlorine Derivatives and 3 Other Research Notes to Explore
Dow (NYSE:DOW): Citigroup believes Dow Chemical is thinking about divesting or joint venturing its chlorine derivatives assets due to underperformance. Citi says the decision to take more aggressive action with these units probably took longer than expected and estimates Dow’s epoxy/PO-PG/chlorinated organics businesses could be worth at least $2.2 billion to $2.5 billion. The firm would view any step to separate from these assets as moving in the “right direction” and keeps a Buy rating on Dow with a $40 price target.
Constellation Brands (NYSE:STZ): Bank of America Merrill Lynch upgraded Constellation Brands to Buy from Neutral. The firm upgraded shares due to valuation, solid imported beer fundamentals, and expected cash flow potential. The shares’ price target has been raised to $70 from $55.
Biogen (NASDAQ:BIIB): Cowen believes Biogen may be capturing as much as 50 percent of new MS patients with its Tecfidera drug. The firm cited new patient starts from IMS data rather than new scrip data from Nrx data, as the scrip data could reflect a change in dose, a new physician, or expiration of a refill prescription. If Tecfidera continues at this pace it could capture more than 50 percent of the market, which would exceed most estimates. Shares of Biogen are Outperform rated with a $278 price target.
American Tower (NYSE:AMT): After American Tower agreed to buy Global Tower Partners for about $4.8 billion, Wells Fargo noted that Global Tower owns about 5,400 domestic sites and has management rights to more than 9,000 U.S. sites. The firm keeps an Outperform rating on American Tower.