Citi Highlights Weakening Polyethylene Market, Trims DOW Price Target

Dow Inc. (NYSE:DOW) is included among the 15 Dividend Stocks Paying 4%+ Yield in 2025.

On November 19, Citi reduced the firm’s price target on Dow Inc. (NYSE:DOW) to $23 from $25 and maintained a Neutral rating on the shares. The firm also lowered its estimates for other chemical companies due to price discounting in polyethylene. It noted that these discounts point to weakening demand and a negative outlook for PE-exposed companies in 2026.

In the third quarter of 2025, Dow Inc. (NYSE:DOW) reported net sales of $10 billion, with gains in the Industrial Intermediates & Infrastructure segment. The company reduced its CapEx spending, which was in accordance with its $1 billion reduction target. Dow also announced the completion of its strategic partnership with Macquarie for the sale of a 49% equity stake in U.S. Gulf Coast infrastructure assets, receiving about $3 billion in cash this year.

Despite reporting mixed earnings across nearly all fronts, Dow Inc. (NYSE:DOW) maintained a stable cash position. The company’s operating cash flow, which came in at $1.1 billion, grew by $330 million from the same period last year. Moreover, it had $4.5 billion in cash and cash equivalents and $10 billion in available liquidity. Dow returned $249 million to shareholders through dividends in the quarter.

Dow Inc. (NYSE:DOW) is an American chemical company that produces coatings, industrial intermediates, plastics, and related products.

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