S&P 500 slips as Fed meeting kicks off
Investing.com - Jefferies maintained its Hold rating on Dow Inc. (NYSE:DOW) but lowered its price target to $23.00 from $28.00 on Monday. The chemical company’s stock, currently trading at $24.50, sits between analysts’ targets ranging from $20.00 to $45.00, with InvestingPro data showing a moderate Hold consensus among analysts.
The research firm reduced its earnings estimates for the chemical company, cutting its 2025 EBITDA forecast by 2%, 2026 EBITDA by 19%, and 2027 EBITDA by 13%. This aligns with broader market sentiment, as InvestingPro data reveals 14 analysts have recently revised their earnings expectations downward for the upcoming period.
Jefferies cited several factors for the downward revision, including ongoing supply chain pressure and likely compression in the ethane-naphtha spread.
The firm also expressed concern about the risk of a delayed demand response to more favorable monetary policy, particularly in the United States.
Jefferies expects Dow to implement further curtailment of capital expenditure spending and additional restructuring measures during 2026-2027 in response to these challenges.
In other recent news, Dow Inc reported its second-quarter 2025 earnings, revealing a larger-than-expected loss and a decline in revenue. The company posted an earnings per share (EPS) of -$0.42, which significantly missed the forecast of -$0.16. Revenue also fell short of expectations, coming in at $10.1 billion compared to the anticipated $10.24 billion. Additionally, Dow and Gruppo Fiori have developed a new process to recover polyurethane foam waste from end-of-life vehicles without requiring disassembly. This innovation aims to establish a closed-loop recycling system for automotive polyurethane foam, extensively used in vehicle seating and interiors. The recycling process could potentially impact the sustainability practices within the automotive industry. These developments reflect the company’s ongoing efforts to address both financial performance and environmental sustainability.
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