Dow Inc (DOW) Stock Forecast & Price Target

Dow Chemical's positive outlook stems from its strategic positioning within the global chemicals market, particularly with its ability to maintain flexible feedstock advantages, which should help mitigate the impact of high production costs. The company anticipates continued demand growth for its film plastics, driven by trends in fresh food consumption, alongside significant cost-reduction initiatives projected to yield approximately $1 billion in savings by 2025. Furthermore, despite facing transient weak demand and housing market challenges, Dow's planned capital expenditures and operational efficiencies should position it for year-over-year growth in fiscal year 2024.

The financial outlook for Dow Chemical appears negative, as the company has revised down its first-quarter and full-year 2025 EBITDA estimates to $990 million and $5.40 billion, respectively, due to headwinds and ongoing margin weakness. Weakness in key markets, particularly in Europe, and challenges such as increased costs for feedstocks and energy, along with a sluggish global GDP growth, indicate that Dow may struggle to achieve its mid-cycle earnings targets. Additionally, uncertainties regarding demand, specifically in the automotive sector and the impact of new polyethylene capacity, further exacerbate concerns over Dow's profitability moving forward.