Dow Inc. started as Top Pick, DowDupont downgraded at RBC

Apr. 16, 2019 9:17 AM ETDow Inc. (DOW), DDDD, DOWBy: Carl Surran, SA News Editor13 Comments
  • Dow Inc. (NYSE:DOW) is "the ultimate commodity cash machine" with an improving free cash flow profile and a commitment to capital return, RBC analysts say in initiating coverage as a Top Pick with a $68 price target.
  • RBC cites Dow's ~54% EBITDA exposure to trough price-to-earnings conditions; Dow realizing benefits from de-bottlenecking of several facilities; low-cost feed advantage; a potential global cyclical upturn in ethylene; low capex spend as no large-scale M&A or greenfield expansion; and impressive value return to shareholders.
  • Meanwhile, the firm downgraded DowDupont (NYSE:DWDP) to Sector Perform from Top Pick, pointing to macroeconomic concerns for the chemical maker.

Recommended For You

Comments (13)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.