Dow drops after BofA double downgrades, slashes PT to Street-low

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