Bank of America Cuts Dow Inc. Rating to Underperform, Raises Target to $35
Bank of America lowered its rating for Dow Inc. to Underperform from Neutral and raised its price target to $35 from $31. The firm cited structural oversupply in petrochemicals and unsustainable year-to-date share gains of roughly 71% driven by temporary geopolitical tailwinds from the Iran conflict.
1. Dow Inc. Rating Change
Bank of America moved Dow Inc.’s rating from Neutral to Underperform and increased its 12-month price target to $35 from $31 as its valuation surged 71% year to date.
2. Oversupply Concerns Explained
The firm highlighted structural oversupply risks in the petrochemical industry and warned that extraordinary earnings supported by temporary geopolitical disruptions may not be sustainable once market normalizes.
3. Price Target and Outlook
Analysts forecast petrochemical prices to peak in Q2 2026 before declining, expecting investor focus to shift to normalized earnings toward 2027–2028, potentially pressuring share performance over the next 12 months.