BUZZ-Street View: Brokerages cut PT on Dow after Q4 profit miss

Reuters
2025/01/31
BUZZ-Street View: Brokerages cut PT on Dow after Q4 profit miss

** Chemical company Dow DOW.N missed fourth-quarter profit estimates on Thursday, hurt by lower demand in Europe

** Company reported break-even earnings per share in the quarter, below expectations of 24 cents per share - data compiled by LSEG

EXPECT NEAR-TERM WEAKNESS

** BofA ("Buy") cuts PT to $44 from $47, says 1Q25 guidance highlights that demand conditions remain poor while elevated feedstock costs are an additional, and more recent, headwind

** "We believe that the weak Q1 earnings forecast could lead to a broad revision of 2025 core profit expectations closer to 2024 levels" - brokerage

** RBC Capital Markets ("Sector Perform") cuts PT to $38 from $41, says while Dow posted somewhat stronger-than-consensus Q4, its 1Q25 outlook is pointing to headwinds from downtime and margin pressure from higher feedstock and energy costs

** J.P. Morgan ("Overweight") cuts PT to $40 from $47, says due to the petrochemical oversupply, it would not be surprised to see Dow shutting high-cost capacity in Europe to cushion the effect of its low-cost additions

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))

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