Dow Inc (DOW) Stock Forecast & Price Target

Dow Chemical's positive outlook is supported by its strategic focus on cost-cutting measures, including plans for approximately $1 billion in savings and a significant reduction of around 1,500 employees. The company's ability to leverage flexible feedstock positions it favorably against high-cost producers, enabling better adaptability in response to fluctuating market demands. Additionally, despite current weak demand trends, Dow anticipates year-over-year growth in FY24, driven by projected cost reductions and an expected increase in polyethylene pricing.

The analysis indicates a negative outlook on Dow Chemical’s stock due to lowered EBITDA estimates, now forecasted at $990 million for Q1 and $5.40 billion for FY25, marking a significant decline from prior estimates. The company's profitability faces headwinds from approximately $200 million in challenges in Q1, alongside ongoing volume and margin weakness, particularly exacerbated by rising oil and natural gas costs. Global demand remains weak, with sluggish GDP growth hampering recovery efforts, particularly in Europe, and leading to assumptions of continued demand deterioration across industrial and consumer markets.