Citigroup Downgrades Dow to Neutral From Buy, Adjusts Price Target to $30 From $35

Citi downgraded Dow (DOW) and LyondellBasell (LYB) to Neutral from Buy, citing weak demand limiting benefits from higher oil and feedstock costs. The firm reduced earnings estimates and price targets for both companies, expecting integrated polyethylene margins to decline into 2027. Citi maintains Buy ratings on Celanese and Eastman but lowered their price targets.

Dow Inc. (DOW) is considering selling its 35% stake in Sadara Chemical, a $20 billion joint venture with Saudi Aramco, to reduce financial pressure. As of June 30, Dow had a negative investment balance of $793 million in Sadara. The venture has faced operational disruptions and financial obligations, making it a burden for Dow. A sale could improve Dow's cash flow and align with its portfolio restructuring goals.

Dow Inc. is reviewing options for its 35% stake in a $20B chemicals venture with Saudi Aramco, including a potential exit, according to Bloomberg. The move is part of Dow's portfolio restructuring amid a downturn in the chemicals industry. Saudi Aramco could acquire Dow's stake, or other investors may bid, but no final decision has been made.

Dow Inc. is considering selling its 35% stake in the $20 billion Sadara Chemical Co. joint venture with Saudi Aramco, as part of portfolio restructuring amid a chemicals industry downturn. Aramco may buy Dow's stake, or other investors could bid. No final decision has been made, and discussions are confidential.

X-energy said the U.S. Department of Energy told it it will receive $1 billion in additional public funding for a nuclear power project in Seadrift, Texas, with Dow Inc. Total DOE funding since 2021 could reach $2.15 billion. The award follows a 50/50 cost share. Dow and X-energy filed a NRC construction permit application, targeting early 2030s operations.

Dow Chemical Co. and Huntsman agreed to settle a price-fixing lawsuit alleging they, with other companies, manipulated prices of chemicals used to make polyurethane. According to the settlement terms, the two firms will pay a combined $20 million. The deal ends the claims in the suit.