Dow Chemical's stock surged 5.01% during intraday trading on Monday, marking a significant upward movement for the materials company.

The sharp increase appears to be driven by positive analyst sentiment, with both Citi and Deutsche Bank raising their price targets for the company. Citi increased its target to $28 from $27 while maintaining a Neutral rating, while Deutsche Bank raised its target more substantially to $28 from $25.

Adding to the bullish momentum, options traders showed increased interest in Dow Chemical with call volume trading 1.4 times expected levels and implied volatility rising over 1 point to 43.34%. This bullish options activity, combined with the company being highlighted as a top pick in the materials sector by analysts, contributed to the stock's strong performance during the trading session.