Nomura Securities started Dow Chemical (DOW) with a “Buy” rating and a $57 price target. This price target suggests a 31% upside.

According to analyst Aleksey Yefremov: "We see several reasons to own DOW: (1) earnings growth should accelerate above “normal” levels as Dow begins to harvest major capital investments in 2H15; (2) DOW’s portfolio is improving as it sheds ~$8bn-plus in commodity and non-core assets; (3) capex to decline after a 2015 peak, aiding ongoing share buybacks under a $6.1bn authorization (~11% of market cap). (4) In addition to projects, we see 3–6% growth in Dow’s “base” business of making chemicals for end markets, ranging from industrial and construction to ag and electronics."

DOW stock has been flat this year. Despite the collapse in oil prices, the stock’s performance has been disappointing. In our view, the analyst’s bullish view on DOW may be too optimistic.

DOW does have a great dividend yield for income-focused investors; however, many chemical companies have been known to cut their dividends.

Investors seeking exposure to DOW may also consider the funds below. These funds currently hold the largest stakes in the company.

The funds above give investors exposure to various holdings and industries. Investors interested in DOW may also be interested in Exxon (XOM) and Monsanto (MON).

Shares of DOW have been flat YTD.