Dow (DOW) is positioned to generate more than $6 billion in EBITDA in 2026, helped by stronger polyethylene margins, lower maintenance spending in H2, and additional cost savings, RBC Capital Markets said Friday in a report.

The company expects supply-chain conditions to take about three quarters to normalize, though Dow remains on track to meet or exceed its Q2 guidance despite disruptions tied to the Middle East conflict, the report said.

RBC forecasts Q2 EBITDA of $2 billion, up from its prior $1.41 billion estimate. It also raised its EBITDA targets to $6 billion from $4.7 billion in 2026 and to $6.5 billion from $5.3 billion in 2027.

RBC boosted its price target on Dow stock to $51 from $47 and reiterated its outperform rating.

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