BofA analyst Steve Byrne has revised the price target for Dow Inc. (DOW, Financial), reducing it from $28 to $27 while maintaining an Underperform rating. The decision follows escalating earnings pressures that outweigh the benefits of a lower dividend risk, according to Byrne's analysis.
Byrne highlights that projections for EBITDA in 2025 are declining further. The significant cutbacks in capital expenditures are proving insufficient to counterbalance the reduced operating cash flow. Despite these challenges, there are some positive aspects. The postponement of the Alberta project has lessened the impact on free cash flow, and along with the NOVA legal resolution, it appears that dividends are secure through 2026.
