Dow Inc. Stock Extends Rally on Strong Earnings and Analyst Upgrades

Dow Inc. (NYSE: DOW) shares climbed in morning trading, extending a rally that began after the company posted stronger-than-expected third-quarter results last week. The stock's momentum is being fueled by a combination of a solid earnings beat, positive forward guidance, and subsequent price target increases from Wall Street analysts.

Strong Q3 Performance Beats Estimates

Last week, the materials science company reported a third-quarter performance that surpassed analyst expectations. The results were driven by successful pricing actions and ongoing cost-saving initiatives.

• Operating EPS: $0.71, beating the Wall Street consensus of $0.64.
• Revenue: $11.27 billion, representing a 13% increase from the same period a year earlier.
• Operating EBITDA: Exceeded $1.5 billion.

Dow also strengthened its balance sheet by repurchasing $300 million of its debt during the quarter and announced plans to repurchase an additional $200 million in the fourth quarter.

Analysts Raise Price Targets

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In response to the strong report and outlook, several investment firms raised their price targets on Dow's stock, signaling increased confidence in the company's performance.

• Wells Fargo maintained an Overweight rating and lifted its price target to $40 from $35.
• RBC Capital kept a Sector Perform rating while raising its target to $32 from $29.
• Citigroup held its Neutral stance but boosted its price target to $32 from $30.

Favorable Outlook and Market Context

Dow guided for fourth-quarter operating EBITDA of approximately $1.5 billion, supported by an expected $100 million in additional cost savings and over $100 million in lower turnaround expenses. The company noted its "Transform to Outperform" program is on track to deliver about $700 million in improvements in 2026.

A constructive broader market, with easing crude oil prices, has provided an additional tailwind for Dow. As a major industrial producer, the company's profitability is sensitive to energy input costs and trends in global industrial demand. While the stock rose 2.7% to $33.49 in morning trading, it remains well below its 52-week high of $42.74.