The Alberta Court of King's Bench has mandated Nova Chemicals Corporation to pay Dow (DOW, Financial) an additional C$1.62 billion, equivalent to $1.2 billion, due to losses tied to their shared ethylene facility in Joffre, Alberta. Signed on June 10, this ruling includes interest up to April 7 but does not cover further interest or legal costs. Dow expects the payment to be fulfilled by the fourth quarter of 2025.
This judgment supplements a prior compensation of C$1.43 billion, or $1.08 billion, awarded to Dow in 2019. The earlier decision, from June 2018, concluded that Nova did not run the ethylene plant at full capacity, violating their contract since 2001, and consequently limiting Dow's ethylene supply. The court has instructed a reevaluation of Dow's damages both from 2001 to 2012 and from 2013 to June 2018, periods for which damages hadn't been fully quantified. This judgment remains open to appeal.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Dow Inc (DOW, Financial) is $37.17 with a high estimate of $65.00 and a low estimate of $27.00. The average target implies an upside of 21.09% from the current price of $30.70. More detailed estimate data can be found on the Dow Inc (DOW) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Dow Inc's (DOW, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dow Inc (DOW, Financial) in one year is $43.18, suggesting a upside of 40.65% from the current price of $30.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dow Inc (DOW) Summary page.
