DOW has rallied strongly in 2025, with the engineering and infrastructure stock up over 20% year-to-date, even more than CBA! A clear standout in the group, more than doubling from its 2023 lows delivering a strong 1H for FY25, including cutting costs by a whopping $180mn. This is the key for DOW, following several years of miss-management. Under CEO Grant Fenn who took over in 2023 and importantly, Mal Ashcroft, who we regard as a very good CFO, who joined shortly after, the business has made very good progress with a strong commitment to financial discipline, DOW has also strengthened its balance sheet, but we are conscious that costs can only be cut so far; hence, we wouldn’t be chasing DOW above $6 at this stage.
- We like DOW from a risk/reward perspective around $6.
MM is cautiously bullish DOW
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