Dow’s stock the lone Dow decliner premarket after Deutsche Bank downgrade

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Dow Inc.’s stock dropped 1.6% in premarket trading Friday, making it the only one of the Dow Jones Industrial Average’s 30 components losing ground ahead of the open, after Deutsche Bank analyst David Begleiter downgraded the chemical company. Dow futures rallied 208 points, or 0.7%. Begleiter lowered his rating to hold from buy, while keeping his stock price target at $56. He also downgraded fellow chemical company LyondellBasell Industries NV to hold from buy. “With polyethylene price momentum having slowed, the rapidly growing focus on sustainability and climate change placing plastics directly in the crosshairs after a brief hiatus during the start of the pandemic, and valuation no longer severely discounted following recent share price outperformance, we believe Dow and Lyondell shares will be rangebound in the near-to-medium term,” Begleiter wrote in a note to clients. Dow’s stock has rallied 14.9% over the past three months through Thursday and LyondellBasell shares gained 7.8%, while the Dow has tacked on 4.2%.
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