Dow Inc. (DOW, Financial) encountered a significant setback as Bank of America's analyst, Steve Byrne, revised the company's rating downward from Buy to Underperform. Byrne adjusted his price target to $28, a decrease from the previous target of $44.
The analyst initially supported a Buy rating for Dow, influenced by expectations of the company benefiting from a recovery in macroeconomic conditions and the petrochemical sector over the next few years. However, current developments suggest a challenging environment ahead for Dow.
The company is now contending with a combination of adverse factors, described by Byrne as a "perfect storm." These include weakening macroeconomic conditions, rising trade barriers, and increased U.S. feedstock costs. Collectively, these issues pose a threat to Dow's earnings and dividend sustainability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Dow Inc (DOW, Financial) is $42.53 with a high estimate of $65.00 and a low estimate of $29.00. The average target implies an upside of 47.27% from the current price of $28.88. More detailed estimate data can be found on the Dow Inc (DOW) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Dow Inc's (DOW, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dow Inc (DOW, Financial) in one year is $45.58, suggesting a upside of 57.83% from the current price of $28.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dow Inc (DOW) Summary page.
