Analyst Michael Sison of Wells Fargo maintained a Buy rating on Dow Inc (DOW – Research Report), retaining the price target of $68.00.
Michael Sison has given his Buy rating due to a combination of factors that indicate a strong performance and positive outlook for Dow Inc. The third consecutive year-over-year volume growth in the second quarter of 2024, along with improved integrated polyethylene (PE) margins and pricing, are primary drivers for this optimistic stance. Furthermore, Sison acknowledges a significant recovery in EBITDA for the year 2024, with a 19% increase compared to the previous year, reinforcing the company’s financial strength and potential for growth.
Additionally, Sison’s report highlights several other key elements that contribute to the Buy rating. He notes the expected rise in global PE prices, which should bolster integrated margins and support further price increases. Improved demand trends in key markets, higher operating rates, and lower energy costs in Europe are also seen as positive factors that should drive enhanced margins. These elements are underpinned by a valuation that suggests there is considerable upside to the stock, with a price target based on a multiple of mid-cycle EBITDA that reflects expected volume and profitability growth in 2024.
Sison covers the Basic Materials sector, focusing on stocks such as Ashland, Celanese, and Eastman Chemical. According to TipRanks, Sison has an average return of 8.3% and a 57.23% success rate on recommended stocks.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a $61.00 price target.
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Dow Inc (DOW) Company Description:
Incorporated in 2018, Michigan-based Dow, Inc. provides materials science solutions for consumer care, infrastructure, and packaging markets in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. It operates through three segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials and Coatings.
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