Citi lowered the firm’s price target on Dow Inc. to $56 from $60 and keeps a Neutral rating on the shares as part of a Q2 preview for the commodity chemicals group. The analyst lowered 2024 and 2025 earnings estimates for commodity chemicals by 8% and 11%, respectively, reflecting the impact of higher interest rates for longer, softness in consumer confidence and auto production, and weaker data in housing and infrastructure. Across most chemical chains tepid demand levels have not supported significant price/spread movements despite select outages, the analyst tells investors in a research note. Citi maintains it “neutral to bearish view” on commodity chemicals with its outlook for volume improvement in the second half of 2024 “more muted.”
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