KeyBanc maintains Sector Weight rating on Dow stock amid cost savings

Investing.com - KeyBanc has reiterated its Sector Weight rating on Dow Inc. (NYSE:DOW) stock, noting the company’s second-half performance is exceeding expectations. The chemical manufacturer, currently trading at $24.51, has seen its stock decline over 53% in the past year, according to InvestingPro data.

The chemical company’s improved performance is largely attributed to previously announced cost savings measures and contributions from new projects, according to KeyBanc.

KeyBanc observed that Dow’s emphasis on cost control appeared to tighten further during the third quarter of 2025, helping drive upside for the company.

The research firm noted that Dow management signaled capital expenditures will likely remain flat at $2.5 billion in 2026, potentially including a modest increase in costs for the Alberta project.

Despite positive cost execution, KeyBanc maintained its Sector Weight rating due to concerns about a weak supply and demand outlook, with polyethylene price risks skewed to the downside in the fourth quarter.

In other recent news, Dow Inc. reported its third-quarter 2025 financial results, showcasing a mixed performance. The company achieved an earnings per share (EPS) of -$0.19, which exceeded analysts’ forecast of -$0.31 by 38.71%. However, Dow’s revenue for the quarter was $9.97 billion, falling short of the expected $10.22 billion, missing the forecast by 2.45%. The company also reported adjusted EBITDA of $868 million, surpassing both Mizuho’s estimate of $771 million and the Bloomberg consensus of $760 million. This higher EBITDA was partly due to a strategic decision to defer approximately $125 million of plant maintenance impact to the first quarter of 2026. Meanwhile, Mizuho adjusted its price target for Dow, lowering it from $26.00 to $25.00 while maintaining a Neutral rating. These developments reflect the company’s ongoing efforts to manage operational impacts and market expectations.

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