Dow Inc (DOW – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Vincent Andrews from Morgan Stanley maintained a Hold rating on the stock and has a $43.00 price target.
Vincent Andrews has given his Hold rating due to a combination of factors influencing Dow Inc.’s financial outlook. The revised earnings per share (EPS) estimates for the upcoming quarters and years reflect a more cautious perspective, with adjustments indicating potential challenges ahead. The EPS for the first quarter of 2025 has been adjusted from a slight profit to a loss, and the full-year estimates for 2025 and 2026 have also been lowered, suggesting a less optimistic earnings trajectory.
Additionally, the EBITDA forecasts have been revised downward, taking into account recent developments such as unexpected costs from winter storms and fluctuating energy prices. These factors, combined with a slower-than-anticipated macroeconomic environment, particularly impact key segments like Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure. These considerations contribute to a more conservative outlook, justifying the Hold rating as investors are advised to weigh these risks carefully.
According to TipRanks, Andrews is a 4-star analyst with an average return of 5.1% and a 61.11% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Mosaic Co, Sherwin-Williams Company, and Dow Inc.
In another report released on March 17, Mizuho Securities also maintained a Hold rating on the stock with a $42.00 price target.