Dow Inc. price target lowered to $44 from $55 at RBC Capital

RBC Capital analyst Arun Viswanathan lowered the firm’s price target on Dow Inc. (DOW) to $44 from $55 and keeps a Sector Perform rating on the shares as part of a broader research note previewing 2025 in the Chemicals & Packaging sector. The firm continues to favor names with cost reduction programs given margin improvement potential before demand starts to improve, companies with strong operating leverage and potential for positive volume growth inflection in the second half of the year, and names with low leverage, the analyst tells investors in a research note. For the company, RBC notes that while Dow Inc. is through destocking, demand remains soft, with weakness having persisted in Europe. The firm also states that Dow’s upcoming Alberta cracker project will be a major draw on cash over the next several, which the company believes will require $6B-$7B of gross capex from 2025 through 2029.