UPDATE: Wolfe Research Downgrades Dow Inc. (DOW) to Underperform
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Wolfe Research analyst Josh Silverstein downgraded Dow Inc. (NYSE: DOW) from Peerperform to Underperform with a price target of $55.00.
The analyst comments "We’re downgrading DOW to Underperform as we’re most cautious on the PetChem complex, are now 6% below 2022 Street EBITDA, and our new PT implies 7% downside. Our cautious PetChem view stems from our bullish natural gas, ethane, and propane outlook, which combined with PE prices flatlining and ethylene prices retrenching from early year gains, suggest margins are getting squeezed and this price environment could last for the next 6+ months. Additionally, while DOW has previously used feedstock flexibility to its advantage, with both ethane and propane prices high, operational flexibility has been reduced."
Shares of Dow Inc. closed at $58.96 yesterday.
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