Morgan Stanley Cuts Dow Inc. Price Target on Cautious Chemicals Outlook

Key Facts

1Morgan Stanley maintained an Equal-Weight rating on Dow (DOW) while lowering the price target to $39 from $41.

Amid shifting dynamics in the basic materials sector, Morgan Stanley has adjusted its valuation for Dow Inc., lowering the price target to $39 from $41. The bank maintained an Equal-Weight rating on the stock, citing a cautious outlook regarding the chemicals industry's overall performance and growth prospects.

This revision comes as the chemicals sector grapples with volatile input costs and slowing global industrial demand; peers like LyondellBasell have recently reported pressured margins in their latest earnings calls. Major chemical firms are currently trading at historically lower price-to-earnings multiples due to broader economic uncertainty, per market data.

DOW shares closed at $29.3 on July 16, 2026, remaining well below the bank's revised target level. Investors are now looking toward upcoming economic data, such as Producer Price Index (PPI) releases, which serve as a critical catalyst for understanding inflationary pressures within industrial supply chains.