Evercore ISI Upgrades Dow Inc. (DOW) to Outperform on Risk/Reward

Evercore ISI analyst Stephen Richardson upgraded Dow Inc. (NYSE: DOW) from In Line to Outperform with a price target of $56.00.

The analyst comments "Dissonance between sputtering industrial demand into year-end and prospects for a ‘less bad’ 2025 has muddled the forward outlook for chemicals investors. A number of headwinds certainly remain: Oct/Nov PE price nominations collapsed, 2025 auto build projections are deteriorating, and tariff cross-border trade implications (direct and indirect) are a material unknown. That said, one shouldn’t ignore the economic ingredients for a better 2025 with the potential for 3-4 more Fed rate cuts, lower mortgage rates likely to follow, and US chemical volumes projected to return to growth after two consecutive years of decline. Our sense is further EBITDA/EPS cuts coming to 1Q + FY25 are needed to clear the deck, but we suspect the stocks move sharply higher with signs of improving demand so begin to position accordingly. We are transferring lead coverage of 11 Chemical names to Eric Boyes, and upgrading DOW from In Line to Outperform with a $56/shr PT."

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 $40.11 yesterday.

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