Credit Suisse Downgrades Dow Inc. (DOW) to Neutral

Credit Suisse analyst Chris Parkinson downgraded Dow Inc. (NYSE: DOW) from Outperform to Neutral with a price target of $34.00 (from $39.00).

The analyst comments "We’ve been hesitant to downgrade DOW shares in the face of an elevated dividend yield and a possible NT COVID-19 recovery. However, we now fail to see enough absolute upside in shares (plus a ~7.5% yield) to warrant an Outperform rating, as: (i) PE fundamentals will inevitably remain challenging, even once Brent recovers (CSe $45bbl in ’21 / $60bbl in ’22), (ii) PE and MDI are both well supplied for the foreseeable future / off of trough (MSD supply growth vs. LSD demand growth), (iii) new Chinese PE capacity at min represents headline risk, and (iv) once the macro recovers, we fail to get excited re future growth investments."

For an analyst ratings summary and ratings history on Dow Inc. click here. For more ratings news on Dow Inc. click here.

Shares of Dow Inc. closed at $37.47 yesterday.

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