Dow Inc (DOW) Stock Forecast & Price Target

Dow Chemical is well-positioned for future growth due to its strategic focus on cost reduction, with anticipated annual savings of approximately $1 billion, which includes significant cuts to indirect costs and workforce adjustments. The company’s ability to leverage flexible feedstock options provides a competitive edge against high-cost producers, potentially allowing Dow to navigate the current soft demand in key markets. Additionally, the expected increases in polyethylene pricing, alongside the company's solid response to ongoing economic adjustments, contribute to a positive outlook for Dow's stock performance moving forward.

The financial outlook for Dow Chemical indicates significant challenges, as the company's Q1/FY25 EBITDA estimates have been lowered to $990 million and $5.40 billion, respectively, reflecting an adjustment from previous expectations due to weaker demand and recognized operational downtime. Additionally, the firm faces compounded pressures from rising costs associated with oil and natural gas liquids, along with a prevailing sluggish global GDP that may delay a return to mid-cycle earnings previously anticipated at around $8 billion. With persistent weakness noted in European markets and expected margin compression across key product lines, the overall profitability outlook for Dow remains precarious, suggesting continued demand weakness throughout the year.