Barclays raises DuPont stock rating, lifts target to $89

On Thursday, Barclays (LON:BARC) analyst Duffy Fischer upgraded DuPont shares (NYSE:DD) from an Underweight to an Equalweight rating, while also increasing the price target from $85.00 to $89.00. The $34.2 billion market cap company, which according to InvestingPro analysis is currently trading slightly above its Fair Value, has shown robust growth and is expected to continue its upward trajectory. The adjustment reflects a positive outlook on the company’s electronics segment, with analyst targets ranging from $44 to $116 per share.

DuPont’s ElectronicsCo division ended the year with a 7% increase in sales and a 19% rise in EBITDA, achieving approximately 70% incremental margins. The company’s overall EBITDA reached $3.07 billion, with total revenue of $12.39 billion. This performance was highlighted during the company’s reporting, with particular emphasis on the growth of AI-driven technology applications, the shift to advanced node semiconductors, and a recovery in PCB and smartphone markets.

The company has projected organic sales growth for ElectronicsCo to be around 6-7% by 2025, according to its guidance. Fischer notes that electronic chemicals are a unique segment currently experiencing genuine growth, driven by both secular trends like data centers and AI, as well as cyclical factors such as the rebound in PCB and smartphone industries.

With DuPont’s planned separation of its ElectronicsCo division on November 1, and an investor day slated for early fall to preview the new entity, anticipation is building. The continued surge in investments across the AI and technology sectors further supports the belief that the momentum in electronic chemicals will persist leading up to the separation.

Fischer also points out that, in contrast to other AI-related sectors such as utilities or multi-industrials, electronic chemicals have not undergone excessive valuation multiple expansions. This suggests that the segment may face less risk of valuation contraction from market fluctuations, referring to events like the recent "DeepSeek impact" that affected other sectors a few weeks ago. InvestingPro data reveals DuPont maintains a strong financial health score of "GOOD" and has maintained dividend payments for 54 consecutive years, with additional insights available in the comprehensive Pro Research Report. The analyst concludes with a continued positive stance on DuPont’s prospects in this area.

In other recent news, DuPont de Nemours, Inc. has been the subject of several significant developments. The company’s fourth-quarter earnings report exceeded analysts’ expectations, with a reported earnings per share of $1.13, surpassing the projected figure of $0.98. Revenue for the same quarter was reported at $3.09 billion, representing a 7% year-over-year increase in both net and organic sales.

BMO Capital Markets maintained a positive outlook on DuPont, reiterating an Outperform rating and a price target of $105.00. This affirmation followed strong performance in DuPont’s Electronics & Imaging and Water & Protection segments, as well as a rebound in healthcare-related sectors. BMO Capital’s analysts also highlighted the company’s upcoming strategic split, scheduled for late 2025, which is anticipated to enhance shareholder value.

On the other hand, BofA Securities adjusted the price target for DuPont shares to $88.00 from the previous $82.00, while maintaining an Underperform rating. This adjustment followed DuPont’s impressive fourth-quarter earnings and a positive outlook for 2025. Despite this, BofA Securities noted that DuPont’s EPS growth guidance for 2025, forecasted at 6-8%, is lower compared to other specialty chemical companies.

Additionally, DuPont provided an optimistic outlook for 2025, expecting Q1 2025 EPS of $0.95, above the consensus of $0.93, and revenue of $3.025 billion. For the full year 2025, DuPont forecasts EPS between $4.30 and $4.40, with revenue ranging from $12.8 to $12.9 billion. These are some of the recent developments in DuPont’s financial trajectory.

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