Dow Inc. Downgraded, RBC Slashes Target to $28 on Polyethylene Oversupply

RBC Capital downgraded Dow Inc. from Outperform to Sector Perform. The firm cut its price target for the stock from $51 to $28.

Analysts cited falling polyethylene prices, weak global demand, and slowing GDP growth as primary drivers for the downgrade. RBC noted that recent earnings boosts from supply disruptions were likely temporary.

Structural oversupply in the petrochemical market remains a persistent headwind. RBC also highlighted Dow’s significant capital spending on its Alberta cracker project as a strain on cash flow.

This high expenditure limits the company’s ability to return capital to shareholders. Consequently, RBC lowered its EBITDA estimates for Dow for 2026 and 2027.