RBC Lowers Dow Price Target Amid Weaker Q3 Outlook

RBC Capital has lowered its price target on Dow Inc. to $29 from $32 while maintaining a Sector Perform rating.

The move comes as RBC expects weaker third-quarter EBITDA of $1.50 billion, driven primarily by a 10 cents per pound lower July polyethylene settlement.

This decline reflects increased China production and softer global demand, according to the firm.

RBC adjusted its third-quarter, fiscal 2026, and fiscal 2027 EBITDA estimates to $1.50 billion, $6.18 billion, and $5.40 billion from $1.60 billion, $5.82 billion, and $5.40 billion, respectively.

The stock has declined 32% over the past six months, but RBC now values it at 6.5 times fiscal 2027 estimated enterprise value to EBITDA, down from 7.0 times previously.