Dow Inc. double downgraded at BofA on earnings and dividend risk

As previously reported, BofA analyst Steve Byrne double downgraded Dow Inc. (DOW) to Underperform from Buy with a price target of $28, down from $44. The firm’s prior Buy rating on Dow was driven by a view that the company had significant leverage to a macro/petchem recovery in the next couple of years. However, Dow is now facing a “perfect storm” of softening macro, emerging barriers to trade, and higher U.S. feedstock costs that put both earnings and the dividend at risk, the analyst tells investors.