7. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holdings in Q4 2025: 49
Dow Inc. (NYSE:DOW) is one of the biggest chemical companies in the world. Its shares are up by 67% year-to-date, and since hostilities started in Iran, Jim Cramer has discussed the firm several times. The CNBC TV host had remarked in early February that he would “be a trimmer” of Dow Inc. (NYSE:DOW) due to the firm’s exposure to Chinese buyers. However, on April 1st, he changed tack and commented that the firm was benefiting from the tensions in Iran due to the petrochemical shortages caused by the government. On the 8th, Cramer further solidified his viewpoint and outlined that plastic refining capacity damaged by the war could lead to longer-term tailwinds for Dow Inc. (NYSE:DOW). Citigroup discussed the firm in March as it hiked the share price target to $40 from $28 and upgraded the rating to Buy from Neutral. Like Cramer, the bank also discussed the impact of supply disruptions from the Iranian hostilities on Dow Inc. (NYSE:DOW) and added that North American firms could benefit from higher margins due to access to cheaper natural gas. In this appearance, Cramer also mentioned Bank of America’s coverage of Dow Inc. (NYSE:DOW). BofA had downgraded the stock to Underperform from Neutral and hiked the share price target to $35 from $31:
“No, I mean, the problem here David, is this that, I have been saying that this is the Chem 7. I have Chem 7. They can’t do anything wrong. Of course they’re totally related to price, because of problems in the Middle East. In the Gulf, I mean there’s 20% of this stuff is the stuff that competes against Dow, totally offline. [Sighs] Bank of America says time to step back, it downgrades Dow. And it has been one of the greatest horses. [inaudible] Jim Fitterling said this thing could last a year, the CEO of Dow. So I’m not sure. If you believe, if there’s going to be, hold it there’s a truce, hold it, well we’re going to bomb them on Thursday, and you get to Thursday, and there’s a truce. And then we’re going to bomb them on Saturday, but then we step back because there’s talks. David, this is, the play, on whether the President’s really for real or not. And if you think that he’s just going to keep saying listen, it’s only a matter of time, but then he backs down, just buy Dow. And they also David, LyondellBasell and Westlake, wow, I mean like holy cow, they are really attacking the Chem 7 here. Even though they’re raising estimates and price targets, uh uh, sell Dow. David, this is a gutsy call.”
However, as the Iranian hostilities were in their early days, Cramer’s tone on Dow Inc. (NYSE:DOW) was quite different as he commented on Mad Mad Money on February 6th:
“Okay, look, Dow still needs the Chinese buyers to come back. It’s had a really nice bounce because people wanted to buy the cyclicals. I’d actually be a trimmer of Dow right here after a very brutal run, not a buyer.”
