Dow Inc. Faces Near-Term Challenges Amid Feedstock Pressures and Demand Risks, Long-Term Growth Potential Delayed

In a report released today, Laurence Alexander from Jefferies maintained a Hold rating on Dow Inc (DOW – Research Report), with a price target of $38.00.

Laurence Alexander has given his Hold rating due to a combination of factors affecting Dow Inc. The company’s near-term outlook is challenged by pressures on feedstock and broader demand risks, leading to a reduction in EBITDA estimates for 2025 and 2026. While there is potential for significant EBITDA growth in the long term, this is not expected until 2029-2030.
Additionally, the uncertainty stemming from US tariff policies is expected to impact cyclical end-markets, such as industrial and consumer durables, with automotive orders being particularly volatile. Although oil prices are stable, rising ethane prices in the US are likely to pressure margins, as the company may struggle to pass on cost increases to customers. Other considerations include the impact of proposed tariffs on Chinese shipping vessels and the need for portfolio adjustments to adapt to industry capacity changes.

According to TipRanks, Alexander is an analyst with an average return of -2.0% and a 44.67% success rate. Alexander covers the Basic Materials sector, focusing on stocks such as Ecolab, FMC, and Sherwin-Williams Company.

In another report released today, Barclays also maintained a Hold rating on the stock with a $38.00 price target.