DuPont stock rating reiterated at Outperform by RBC ahead of Qnity spin

Published 15/07/2025, 15:38
DuPont stock rating reiterated at Outperform by RBC ahead of Qnity spin

Investing.com - RBC Capital has reiterated an Outperform rating on DuPont (NYSE:DD) with a price target of $90.00 ahead of the company’s planned electronics business spinoff. The stock currently trades at $74.87, with InvestingPro data showing the company’s market capitalization at $31.27 billion.

The investment firm cited improving fundamentals that could result in DuPont beating its second-quarter and fiscal year 2025 guidance as one reason for maintaining the positive outlook. This aligns with InvestingPro data showing five analysts recently revising their earnings estimates upward, with the company generating $12.52 billion in revenue over the last twelve months.

RBC Capital described DuPont as the most catalyst-rich name in its coverage, noting the potential for approximately $4 billion in proceeds from the electronics business spinoff, known as "Qnity," and unconfirmed potential proceeds of around $2 billion from aramids.

The firm also highlighted DuPont’s current valuation as attractive, suggesting both the water and electronics businesses should be trading at mid-teens multiples compared to the current overall multiple of approximately 10x, which could represent a potential $9 billion improvement over DuPont’s current market enterprise value of about $37 billion.

RBC Capital expects DuPont to provide additional information about the Electronics business and the New DuPont ahead of the spinoff, which could further clarify the company’s strategic direction.

In other recent news, DuPont has made significant strides with its planned spin-off of the electronics business, introducing Qnity as the new brand identity for the independent company. The spin-off, which is targeted for completion by November 1, 2025, will not require shareholder approval but awaits final board and regulatory clearances. Additionally, DuPont has appointed Mark A. Blinn and Dr. Yi Hyon Paik to the board of Qnity, with Jon Kemp set to become CEO following the separation. In the realm of mergers, Hotel101 Global Holdings Corp. has secured clearance from the U.S. Securities and Exchange Commission for its Nasdaq listing through a merger with JVSPAC Acquisition Corp. The merger positions Hotel101 for an equity valuation of $2.3 billion, pending shareholder and regulatory approvals. Furthermore, DuPont has introduced a new agarose-based chromatography resin, AmberChrom™ TQ1, aimed at improving biopharmaceutical purification processes. In a separate development, DuPont has partnered with Epicore Biosystems to integrate sweat-sensing technology with its protective clothing, enhancing worker safety. These developments reflect ongoing advancements and strategic initiatives within DuPont and its associated ventures.

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