DuPont stock reiterated as Buy at Deutsche Bank ahead of Electronics spin-off

Investing.com - Deutsche Bank has reiterated its Buy rating and $90.00 price target on DuPont (NYSE:DD), currently trading at $78.13 with a market capitalization of $32.7 billion, adding the company as a Catalyst Call Buy ahead of its upcoming business separation. According to InvestingPro data, the company maintains a GOOD financial health score, suggesting strong fundamentals.

The bank believes the November 1 separation of DuPont’s Electronics business (Qnity) will unlock substantial value, noting that DuPont shares currently trade at a 38% discount to its estimated sum-of-the-parts value of $126. This potential upside appears significant, particularly considering the stock’s impressive 31.4% gain over the past six months, as tracked by InvestingPro.

Deutsche Bank points out that DuPont’s Electronics business could command a higher valuation after separation, as its closest peer Entegris trades at 19.4x 2025 estimated EBITDA, while DuPont trades at just 11.4x.

The separation into two publicly traded companies is expected to bring greater focus to DuPont’s significant discount to its sum-of-the-parts value, which currently stands at 38% or 5.9x below estimated worth.

Deutsche Bank identified several potential catalysts for the stock, including the completion of the November 1 Electronics business separation, better-than-expected third-quarter earnings, and stronger-than-anticipated fourth-quarter earnings guidance.

In other recent news, DuPont has announced the U.S. Securities and Exchange Commission’s approval of the Registration Statement on Form 10 filed by Qnity Electronics, Inc., marking a significant step towards its planned separation into two independent, publicly traded companies on November 1, 2025. Additionally, DuPont revealed the final results of its exchange offers for three series of senior notes, with varying participation rates. The 4.725% Notes due 2028 saw a 70.42% participation, while the 5.319% Notes due 2038 and 5.419% Notes due 2048 had lower participation rates of 22.60% and 13.71%, respectively.

UBS has maintained its Buy rating on DuPont, citing upside potential from the upcoming electronics spin-off, with a price target of $91.00. Wells Fargo reinstated coverage of DuPont with an Overweight rating and a $100.00 price target, indicating optimism about the value the spin-off will unlock for shareholders. In another development, DuPont has signed an agreement to acquire Sinochem (Ningbo) RO Memtech Co., Ltd., expanding its reverse osmosis manufacturing capabilities into China and the Asia Pacific region. This acquisition will add a third production facility to DuPont’s global network, enhancing its water technology footprint.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.