Street View: Dow faces delayed recovery amid slow global demand
** Chemicals and additives maker Dow DOW.N missed second-quarter profit estimates on Thursday, hurt by lower demand and prices in Asia and Europe
EXPORT PRICING IN FOCUS
** RBC ("sector perform," PT: $57) says with slow global GDP growth and sluggish demand, Dow's return to ~$8B mid-cycle earnings may take longer than expected
** "The 2H recovery story now holds less weight, and we think other commodity chemicals names could also trade lower as a result"
** J.P. Morgan ("overweight," PT: $60) notes Dow is likely to remain near current levels of profits and profitability, without any acceleration in global economic activity, or a rise in oil prices, or weather dislocations
** Piper Sandler ("overweight," PT: $64) believes with polyethylene exports continuing to gain volume and domestic markets rebalancing, price and margin expansion to gain momentum in 2025
** "While we do not see any substantive recovery on the horizon, it is worth noting that it is not backsliding" - Piper Sandler
** BMO ("market perform," PT: $57) says with strong moves in spot/export prices in June and July to date, we expect a good start for Q3 quarter-on-quarter, assuming no macro surprises
Reporting by Kanchana Chakravarty in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
