In a report released yesterday, John McNulty from BMO Capital maintained a Sell rating on Dow Inc, with a price target of $22.00.
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John McNulty has given his Sell rating due to a combination of factors impacting Dow Inc. The company reported a significant miss in its second-quarter earnings, with EBITDA falling to $703 million, which is less than half of what it was the previous year and below market expectations. This decline is attributed to a challenging macroeconomic environment and increased capacity in various chemical chains, leading to weaker pricing and reduced margins.
Furthermore, Dow Inc. has cut its dividend in half to manage its capital priorities amid ongoing financial pressures. The company’s guidance for the third quarter is also below market expectations, and the current run rate suggests that the 2026 consensus targets are unlikely to be met. These factors, combined with a challenging risk/reward scenario, lead to the expectation that Dow Inc.’s stock will underperform compared to its peers.
According to TipRanks, McNulty is a 3-star analyst with an average return of 2.0% and a 53.07% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Celanese, LyondellBasell, and Sherwin-Williams Company.