Jefferies analyst Laurence Alexander upgraded the rating on DuPont de Nemours (DD – Research Report) to a Buy today, setting a price target of $101.00.
Laurence Alexander has given his Buy rating due to a combination of factors including DuPont de Nemours’s exposure to cyclical recovery in key sectors and the company’s disciplined financial management. DuPont is positioned to benefit from increased volumes in the next economic cycle, specifically in the electronics, construction, and manufacturing industries. Alexander anticipates that the company’s strategic focus on portfolio evolution and cultural change will support a higher multiple expansion. Additionally, the disciplined approach to free cash flow (FCF) deployment, with a substantial average yield before dividends, is expected to contribute positively to the company’s narrative over the coming years.
Alexander’s optimism also extends to DuPont’s end-markets, which are forecasted to emerge from trough conditions in the second half of 2024, particularly led by the electronics sector. With expectations of volume gains supported by inventory restocking and increased demand across various sectors, there is a predicted uplift to DuPont’s earnings per share (EPS). Moreover, DuPont’s balance sheet flexibility, including potential share buybacks, is seen as a driver for additional earnings enhancement. Alexander’s analysis suggests that with improved operations and balance sheet management, DuPont is likely to achieve valuation multiples on par with or higher than its peers, justifying the Buy rating.
In another report released on May 2, J.P. Morgan also maintained a Buy rating on the stock with a $88.00 price target.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DD in relation to earlier this year.
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DuPont de Nemours (DD) Company Description:
Delaware-based DuPont de Nemours, Inc., which is commonly known as DuPont, is a multi-industry specialty solutions company and provides specialty materials, chemicals, and agricultural products in the United States, Canada, Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company was formed by the merger of Dow Chemical and E. I. du Pont de Nemours and Company on August 31, 2017. It operates through the following segments: Electronics & Imaging; Nutrition & Biosciences; Transportation & Industrial; Safety & Construction, and Non-Core.
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