Shares of chemical maker Dow may very well be due for a tough touchdown because the financial system normalizes after the pandemic shutdowns, in keeping with Credit Suisse. Analyst John Roberts downgraded the inventory to underperform from impartial, saying in a observe to shoppers that Dow’s valuation seems pricy amid probably unsustainable outcomes. “We remain concerned that US basic chemical producers are overearning, just as there appears to be a consumer shift away from goods to services,” Roberts wrote. In addition to the elevated demand for items, the rise in vitality costs has additionally been a optimistic for Dow, Credit Suisse mentioned, because it offers a comparative benefit to U.S.-based producers. Those components have the potential to reverse within the coming years, however that’s not mirrored in ahead estimates for Dow, in keeping with Credit Suisse. “Returns were 10-12% immediately pre-pandemic, which we consider a period of relative ‘normality.’ … Recent returns have been over 20% and have only come down modestly in the current quarter. And we believe estimated returns for the next several years remain above ‘normal,'” Roberts wrote. Based on the hypothetical “normalized” earnings, Dow could also be overvalue relative to its friends, Credit Suisse mentioned. Dow’s inventory is down about 3% 12 months up to now, simply outperforming the broader market. Credit Suisse cuts its value goal on Dow to $49 per share from $67. The new goal is greater than 10% under the place the inventory closed on Wednesday. — CNBC’s Michael Bloom contributed to this report.