Dow Inc Receives Sell Rating from Bank of America Securities with $27 Price Target

Bank of America Securities analyst Steve Byrne reiterated a Sell rating on Dow Inc with a price target of $27.00. Dow Inc's shares opened at $28.01. Byrne has a 45.50% success rate on recommended stocks. Dow Inc has a market cap of $20.12B and a P/E ratio of 71.13.

Bank of America Securities analyst Steve Byrne has reiterated a Sell rating on Dow Inc (NYSE: DOW), with a price target of $27.00. Dow Inc's shares opened at $28.01 on July 2, 2025. Byrne, known for his 45.50% success rate on recommended stocks, believes that the market is currently undervaluing the company's stock [1].

The Sell rating comes amid significant challenges facing the chemical giant. Dow Inc recently announced the closure of three European operations, including a smaller ethylene cracker in Böhlen, Germany, a small chlor-alkali complex in Schkopau, Germany, and a larger siloxanes operation in Barry, UK. These closures are part of the company's broader strategy to adjust operations in response to significant capacity investments from China [1].

The closures are expected to result in charges of $630 million to $790 million and impact approximately 800 roles. However, Dow Inc anticipates an EBITDA uplift of $200 million by 2029 due to these closures [1]. The company's European polyurethanes business remains under review, with BofA Securities suggesting that buyer interest in that business "may be tepid" [1].

In addition to the closures, Dow Inc is also facing ongoing challenges in the chemicals sector, particularly with polyethylene pricing. Mizuho Securities, for instance, has lowered its price target to $31, citing these challenges [1]. BMO Capital has downgraded Dow from Market Perform to Underperform, reducing the price target to $22 due to weak market conditions affecting the company's financial performance [1].

Moreover, a Canadian court ordered NOVA Chemicals to pay Dow approximately USD$1.2 billion in additional damages related to a jointly owned ethylene asset. This judgment follows a previous payment to Dow in 2019 and is subject to appeal [1].

Despite these challenges, Dow Inc remains a notable dividend payer, with a current dividend yield of 9.84% [1]. Analysts are divided on the stock's future performance, with a mix of Buy, Hold, and Sell ratings. The average price target for Dow Inc is $32.54, representing a 14.34% upside from the current price of $28.46 [2].

Investors should closely monitor Dow Inc's performance and the ongoing closures to assess the potential impact on the company's financial health. The Sell rating from BofA Securities suggests a cautious approach to the stock, given the current market conditions and the challenges faced by the company.

References:
[1] https://www.investing.com/news/analyst-ratings/bofa-securities-reiterates-underperform-rating-on-dow-stock-amid-european-closures-93CH-4125154
[2] https://www.tipranks.com/stocks/dow/forecast