Citi lowered the firm’s price target on Dow Inc. (DOW) to $31 from $39 and keeps a Neutral rating on the shares. The firm also opened a “30-day negative catalyst watch” on the shares. Citi sees potential downside into earnings with Dow likely printing the lowest EBITDA quarter since 2020. Improvements in the company’s integrated polyethylene margins will be more “muted” on rising feedstock costs and difficulty getting price, the analyst tells investors in a research note. Citi thinks the tariff overhang is most pronounced for U.S. polyethylene producers who will likely need to redirect trade flows as a result.
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