Bank of America Securities upgraded Dow Inc. To Neutral from Underperform on Monday and raised its price objective to $31 from $29. The change reflects stronger petrochemical pricing, expectations that energy inflation could persist and signs that Dow’s earnings are stabilizing.
The revised view follows higher September prices for polyethylene and ethylene glycols. Polyethylene is used in packaging and consumer products, while ethylene glycols are used in products including polyester fibers and antifreeze.
Analyst Matthew DeYoe linked the outlook to continued geopolitical instability in the Middle East and the resulting risk that crude oil prices remain elevated for longer. China has also returned to being a net importer of chemicals, a shift that could support demand and pricing. The analysis said higher oil prices may improve Dow’s competitive position among producers with oil-linked costs, although the broader energy inflation is not uniformly favorable across industries.
Dow’s ongoing productivity initiatives, valued at more than $2 billion, were identified as another factor supporting earnings stability. The revised rating remains Neutral, indicating that the improved outlook lifted the stock above the prior bearish view without establishing a bullish recommendation.