Goldman Sachs analyst Duffy Fischer has maintained their neutral stance on DOW stock, giving a Hold rating today.
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Duffy Fischer has given his Hold rating due to a combination of factors influencing Dow Inc’s financial outlook. The company’s recent financial performance showed a decline in adjusted EBITDA compared to both the previous year and market expectations, indicating challenges in meeting earnings targets. Additionally, Dow’s guidance for the next quarter suggests continued pressure, with projected net sales and EBITDA figures falling short of consensus estimates.
Another factor contributing to the Hold rating is the uncertainty surrounding Dow’s pricing strategy for polyethylene, a key product. While the company has announced price increases, there is a risk that these may not materialize, potentially impacting margins. Furthermore, despite a recent dividend cut, concerns remain about cash flow sustainability, especially if macroeconomic conditions do not improve. However, Dow has noted several one-time cash inflows that could support its financial position, providing some reassurance to investors.
According to TipRanks, Fischer is a 5-star analyst with an average return of 15.3% and a 65.03% success rate. Fischer covers the Basic Materials sector, focusing on stocks such as Dow Inc, Huntsman, and Olin.
In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $30.00 price target.