In a report released yesterday, Vincent Andrews from Morgan Stanley maintained a Hold rating on Dow Inc (DOW – Research Report), with a price target of $43.00.
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Vincent Andrews has given his Hold rating due to a combination of factors affecting Dow Inc. One significant consideration is the strategic asset review, particularly concerning Dow’s polyurethane assets in Europe. The company anticipates that around 20% of European demand might not return to pre-conflict levels, which has led them to reassess their assets in a region that is already high-cost and likely to remain so. This could result in a reduction of approximately $500 million from Dow’s mid-cycle EBITDA expectations, impacting their overall financial outlook.
Additionally, while the Path2Zero project in Fort Saskatchewan, Alberta, is progressing on schedule and within budget, any delays could incur additional costs. The polyethylene market also presents challenges, with recent price adjustments and the push for higher pricing facing resistance due to existing contracts and margin pressures. These various elements contribute to a cautious outlook, leading Andrews to recommend holding the stock rather than pursuing aggressive buying or selling.
In another report released yesterday, Alembic Global also maintained a Hold rating on the stock with a $50.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DOW in relation to earlier this year.