Analyst John McNulty from BMO Capital maintained a Sell rating on Dow Inc and keeping the price target at $20.00.
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John McNulty has given his Sell rating due to a combination of factors that suggest Dow Inc. may struggle to perform in line with the broader sector. Despite Dow’s efforts to strengthen its balance sheet through asset sales, including a significant stake in its Diamond Infrastructure Solutions, the company still faces challenges in generating positive free cash flow post-dividend without improvements in the macroeconomic environment.
Additionally, McNulty points out that the company’s current yield and target price indicate a modestly negative return, and the consensus numbers for 2026 may need to be adjusted downward. The pressure to maintain dividends amidst a challenging earnings environment further complicates the outlook. Consequently, McNulty maintains an Underperform rating with a target price of $20, reflecting a tough risk/reward scenario for Dow Inc.