Stocks
KeyBanc Downgrades Dow Inc. with Sector Weight Rating
KeyBanc analyst Salvator Tiano recently initiated coverage of Dow Inc. stock (ISIN US2605571031) with a Sector Weight rating and a price target of USD 26.00.
The current trading price of around USD 29.64 on the New York Stock Exchange is modestly above this target, but KeyBanc sees only moderate downside potential from current levels.
The firm's cautious stance is driven by its expectation of significant decline in profitability over the next few years for polyethylene, a key market segment for Dow Inc.
Despite this, KeyBanc notes that Dow Inc. currently trades at about 5.75 times its 2026 EBITDA estimate and around 7.25 times its 2027 estimate, which are both below the company's long-term average multiples.