11:31 AM EDT, 10/24/2025 (MT Newswires) -- Dow's (DOW) better-than-expected Q3 earnings reflected savings from cost reductions and lower maintenance expenses, but its Q4 guidance appears "a bit optimistic," BofA Securities said in a Friday note.

The company guided Q4 earnings before interest, taxes, depreciation, and amortization to about $725 million, above Wall Street's $680 million consensus, implying a stronger polyethylene margin outlook than BofA expects.

BofA raised its Q4 EBITDA estimate to $690 million from $527 million, saying Dow's forecast of just 1 cent per pound margin compression quarter over quarter looks optimistic given the current polyethylene and feedstock price trends and industry conditions.

The brokerage also lifted its 2026 EBITDA estimate to $3.71 billion from $3.64 billion.

The firm raised its price objective to $26 from $24 and maintained a neutral rating.

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