Dow Inc. upgraded to Neutral at BofA with estimates lowered, dividend cut

As previously reported, BofA upgraded Dow Inc. (DOW) to Neutral from Underperform with an unchanged price target of $25. When the firm previously downgraded Dow in April it had been concerned about downside to earnings forecasts and risk to the dividend, but Street estimates have moved lower since then, Q2 results reflected the tougher market conditions and Dow has also cut its dividend to “a more manageable level,” the analyst tells investors. The setup is “clearly more favorable today, and we see shares as oversold,” the analyst added.