Dow Inc. (DOW) PT Lowered to $52 at Citi

Citi analyst Pat Cunningham lowered the price target on Dow Inc. (NYSE: DOW) to $52.00 (from $54.00) while maintaining a Neutral rating.

The analyst comments "Dow cut its guidance for 3Q24 ahead of earnings this week, guiding to Op. EBITDA of ~$1.3bn compared to consensus at ~$1.5bn. The company attributes its decrease to TX ethylene cracker outage, which started in late July and will start up later this month, and margin compression in Europe, which has showed lower-than-expected demand. The company expects 4Q24 to still show traditional seasonality, offset by favorable NAM pricing dynamics and feedstock cost for P&SP, lower turnaround costs, higher operating rates, and improved weather conditions. We adjust our 3Q24 EBITDA estimates ~$198 mm lower to $1,333 mm, with largest revisions to P&SP EBITDA (~$130 mm lower) due to lost sales and higher cost spot purchases. We make small changes to II&I (~$51 mm lower) due to weaker sales from ramping Glycol-2 unit and mobility end markets. PM&C EBITDA is revised downward ~$16 mm due to weaker seasonality."

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