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Investing.com - JPMorgan has reiterated its Overweight rating on DuPont (NYSE:DD) with a price target of $104.00, suggesting the stock remains undervalued as the Water Intelligence (WI) spinoff begins trading. Currently trading at $82.12 with a market cap of $34.37 billion, DuPont shows strong financial health according to InvestingPro metrics, with an overall score of GOOD.
The investment bank noted that while volatile, Q-WI closed at $95, below JPMorgan’s sum-of-the-parts (SOTP) implied price of $99, which represents a 16x 2026 EV/EBITDA multiple versus their SOTP implied multiple of 16.5x.
At DuPont’s consolidated stock price of $81, JPMorgan calculates this implies a remaining company enterprise value of approximately $16.5 billion, or roughly 9.6x on the firm’s 2026 remaining company EBITDA estimate.
This valuation sits 25-30% below JPMorgan’s SOTP implied valuation and represents a 40% discount assuming a sector average EV/EBITDA of 16x, while also falling 10-15% below the bank’s estimated floor remaining company valuation of 11x.
For context, JPMorgan points out that the current implied multiple of 9.6x is close to DOW trading at 9x, a stock showing -8% compounded annual EBITDA decline from 2024-2027E, while DuPont represents the specialty products division of DowDuPont that should warrant a higher multiple.
In other recent news, Solstice Advanced Materials is set to join the S&P 500 index following the completion of its spinoff from Honeywell International. This change is scheduled to take effect on October 31, with Honeywell maintaining its positions in both the S&P 500 and S&P 100. Meanwhile, DuPont has made several announcements related to its upcoming business separation. The U.S. Securities and Exchange Commission has declared the registration of DuPont’s Qnity Electronics effective, marking a significant step in the planned separation into two independent companies. Deutsche Bank reiterated its Buy rating on DuPont, highlighting the potential value unlock from the November 1 separation. Additionally, RBC Capital raised DuPont’s price target to $100, reflecting expectations of lower net leverage after the Aramids sale. DuPont also reported the final results of its exchange offers for senior notes, with varying participation rates across different series.
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