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Investing.com - BMO Capital raised its price target on DuPont (NYSE:DD) to $107.00 from $101.00 on Tuesday, while maintaining an Outperform rating on the stock. According to InvestingPro data, DuPont, currently valued at $32.21 billion, maintains strong analyst support with a consensus "Buy" rating and analyst targets ranging from $47 to $113.
The price target increase follows DuPont’s announcement of the sale of its Aramid business to Arclin for $1.8 billion. The transaction includes approximately $1.2 billion in cash, a $300 million note, and $325 million in equity.
The deal represents a multiple of 7.2-7.7 times 2024 EBITDA for the Aramid business, which BMO Capital describes as having lower margins, lower growth, and more cyclical characteristics compared to DuPont’s core operations.
Following this divestiture, DuPont’s updated business mix will be nearly evenly split between Water & Healthcare and Industrial segments, at approximately 50/50.
BMO Capital indicates the transaction provides DuPont with enhanced financial flexibility and an improved portfolio, which could support a higher valuation following the company’s planned split.
In other recent news, DuPont De Nemours Inc. reported its second-quarter 2025 earnings, which surpassed analysts’ expectations. The company achieved an adjusted earnings per share of $1.12, beating the forecast of $1.06. Revenue also exceeded projections, totaling $3.26 billion compared to the anticipated $3.24 billion. In addition to these financial results, DuPont announced an agreement to sell its Aramids business, including the Kevlar and Nomex brands, to Arclin for $1.8 billion. This sale represents a strategic move as DuPont continues to refine its business portfolio. Mizuho responded to this development by raising its price target for DuPont stock to $90.00 from $85.00, while maintaining an Outperform rating. The agreement with Arclin involves the transfer of specialized fabric units, marking a significant shift in DuPont’s business focus. These recent developments highlight DuPont’s ongoing efforts to align its operations with strategic goals.
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