RBC Capital Downgrades Dow Inc. to 'Hold'
RBC Capital has downgraded Dow Inc. to 'hold' with a $28 price target, a 2.34% upside from the current price.
Key Points
- RBC Capital downgraded Dow Inc. to 'hold' with a $28 price target on July 1, 2026.
- RBC Capital's $28 price target implies 2.34% upside from Dow Inc.'s ($DOW) current $27.36 share price.
- Dow Inc. shares were trading near $27.36 on Wednesday with a market cap of approximately $19.72 billion.
- Insiders at Dow Inc., including CEO James Fitterling, made recent stock purchases, signaling internal confidence.
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RBC Capital analyst Arun Viswanathan downgraded Dow Inc. (NYSE:DOW) to a 'hold' rating on July 1, 2026, setting a price target of $28. This move reflects a cautious stance on the stock's near-term prospects.
RBC Capital vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
Dow Inc. Stock Down 9.3%
Shares of NYSE:DOW traded around $27.36 on Wednesday. Dow Inc. has a market cap of about $19.72 billion and a forward P/E ratio of 13.0. The stock's beta is 0.405, indicating relatively low volatility compared to the market. Over the past year, Dow's stock price has ranged from a low of $20.40 to a high of $42.74. Its 50-day moving average is $35.69, while the 200-day moving average is $29.80. The company's current ratio is 1.85, and its quick ratio stands at 0.90, with a debt-to-equity ratio of 117.13.
$DOW price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its most recent earnings report, Dow Inc. posted revenue of $39.33 billion, although it experienced a revenue decline of 6.1%. The company reported a net margin of -7.24% and a return on equity of -15.26%. Dow is scheduled to announce its next earnings on July 23, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 51.8%. Revenue met estimates.
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Profit surprise
EBITDA missed by 76 percent. Operating income beat by 50 percent.
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Pre-earnings setup
Bar was low, analysts cautious going in.
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Analyst signal
5 target raises.
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Earnings quality
Operating margin down 1.6 points. Positive free cash flow.
Earnings Call Summary
Dow reported first quarter revenue of $9.8 billion and EBITDA of $873 million. The Middle East conflict disrupted global supply chains starting in March, creating tight conditions that benefited Dow's Americas-based assets. Management expects these supply constraints and pricing momentum to persist through 2026, delivering significant earnings upside in coming quarters as they execute cost-reduction and transformation initiatives.
Guidance Dow guided second quarter revenue of approximately $12 billion and EBITDA of about $2 billion. Management expects pricing gains across all business segments to drive earnings higher, especially in polyethylene where April prices were announced up $0.30 per pound, with May prices rising another $0.20.
Good report. The company beat and showed some forward improvement, with a few meaningful caveats.
Dividend
Dow Inc. offers an annual dividend rate of $1.40 per share, yielding 5.12%. The company's dividend payout ratio is a modest 7.0%, indicating a conservative approach to dividend distribution.
Insider Buying and Selling at Dow Inc.
Several insiders at Dow Inc. have made recent stock purchases, signaling potential confidence in the company's future. On February 12, 2026, Chair and CEO James Fitterling acquired 68,230 shares. Additionally, on April 9, 2026, insiders Gaurdie Banister Jr., Wesley Bush, Debra Dial, Luis Alberto Moreno Mejia, and Daniel Yohannes each purchased 5,127 shares.
Analysts Set New Price Targets
On July 1, 2026, RBC Capital downgraded Dow Inc. to a 'hold' rating with a $28 price target. On the same day, Mizuho maintained its 'hold' rating with a $35 target. A day earlier, B of A Securities kept its 'sell' rating with a $29 target. Citigroup has maintained a 'buy' rating, setting targets of $35 and $41 in recent months. The consensus recommendation for Dow is 'buy', with an average target price of $41.88 based on 16 analyst opinions.
About Dow Inc.
Dow Inc., headquartered in Midland, Michigan, is a global leader in materials science solutions. The company operates through segments such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. Dow serves a diverse range of industries, including packaging, infrastructure, and mobility, with a significant presence across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Led by CEO James R. Fitterling, Dow employs approximately 34,600 people worldwide.
Bottom Line
RBC Capital's downgrade of Dow Inc. to 'hold' reflects a cautious outlook amid recent market conditions. Investors track such analyst ratings closely, as they can influence stock performance. It's important to remember that these ratings are based on past data and may not represent future performance.
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