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StocksMedium•6 April 2026•

1 min read

BofA Securities Downgrades Dow Inc to Underperform on Oversupply Concerns

Key Facts

1BofA Securities downgraded Dow Inc. (DOW) to Underperform from Neutral.

2The firm cited concerns about structural oversupply in the chemical industry and an unsustainable earnings environment.

3Shares have risen approximately 71% year to date, leading to concerns that current valuations reflect temporary 'overearning'.

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2 additional sources confirmed this story

BofA Securities has downgraded Dow Inc. (DOW) from Neutral to Underperform, citing growing structural challenges in the chemical industry. The firm highlighted concerns over a looming oversupply in the petrochemical market and an unsustainable earnings environment. Despite a significant 71% rally in the stock price since the beginning of the year, analysts warned that current valuations may reflect temporary "overearning." While geopolitical tensions and high crude prices have provided short-term support, BofA expects petrochemical pricing to weaken significantly after a projected peak in Q2 2026. This downgrade reflects a cautious outlook on the company's ability to maintain its recent performance amidst shifting market dynamics. Investors are advised to monitor the broader materials sector, as represented by the XLB ETF, for potential spillover effects.