Dow Inc. (DOW) PT Lowered to $29 at RBC Capital on PE headwinds
RBC Capital analyst Arun Viswanathan lowered the price target on Dow Inc. (NYSE: DOW) to $29.00 (from $32.00) while maintaining a Sector Perform rating.
The analyst commented: "We now expect weaker Q3 EBITDA of $1.50B, driven primarily by the -10cpp lower July PE settlement, driven by increased China production and softer global demand. That said, we remain constructive on a Q4 recovery given a likely +5cpp September PE settlement, lower turnaround expense, and accelerating TTO benefits (~$60–70M q/q step-up). We are adjusting our Q3/FY26/FY27 EBITDA estimates to $1.50B/$6.18B/$5.40B from $1.60B/ $5.82B/$5.40B, but slightly lower PT to $29 (from $32) now on 6.5x (from 7.0x) FY27E EV/EBITDA given near-term PE price pressure."
