** Dow Inc's DOW.N shares down 2.7% to $28.10 early Tues after BofA Global Research downgrades chemical firm to 'underperform' from 'buy'
** BofA slashes PT from $44 to $28, lowest on Wall Street, per LSEG data
** Co now facing a "perfect storm" of softening macroeconomic environment, emerging trade barriers and higher U.S. feedstock costs, BofA writes in note
** BofA says co to encounter earnings headwinds from slowing economy, pointing to significant leverage to GDP growth and cyclical end-markets such as construction and autos, and U.S. petrochemical industry's reliance on exports, including to China
** Exacerbating the earnings hit, co's ~$2 bln annual dividend now looks increasingly at risk, BofA says
** In Jan, co said it would reduce global headcount by 1,500 as part of cost savings plan due to lackluster demand and margin pressures
** Now, of 23 brokerages covering DOW, recommendation breakdown is 3 "strong buy" or "buy", 18 "hold" and 2 "sell"; median PT of $37 down from $44 a month ago
** With move on Tues, shares down 30% YTD, including ~20% drop this month. In comparison, S&P 500 Chemicals index SPXCM has lost 3.5% in 2025
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.