Dow Inc. downgraded to Underperform from Market Perform at BMO Capital

BMO Capital downgraded Dow Inc. (DOW) to Underperform from Market Perform with a price target of $22, down from $29. The “significant weakness” across the company’s end markets resulting in soft pricing and lower volumes is likely to result in “severely challenged” Q2 EBITDA and second half of the year estimates “coming solidly lower,” the analyst tells investors in a research note. The firm says that looking at 2026, barring a change in the macro environment or significant supply closure, Dow’s 2026 EBITDA is set to come in $1B below consensus estimates. “With no end in sight for these anemic earnings levels, there appears a heightened risk Dow may cut the dividend,” the analyst tells investors in a research note.