Mizuho raises DuPont stock price target to $90 on Nomex and Kevlar sale

Published 02/09/2025, 12:52
Mizuho raises DuPont stock price target to $90 on Nomex and Kevlar sale

Investing.com - Mizuho raised its price target on DuPont (NYSE:DD) stock to $90.00 from $85.00 on Tuesday, while maintaining an Outperform rating following the company’s agreement to sell its Nomex and Kevlar fabric businesses. According to InvestingPro data, DuPont currently trades at $76.92, with 8 analysts recently revising their earnings estimates upward for the upcoming period.

DuPont has agreed to sell these specialized fabric units to Arclin, a company owned by private equity firm TJC (formerly The Jordan Company). The transaction includes DuPont’s fire and heat-resistant Nomex fabrics and bullet/ballistics-resistant Kevlar products, which are based on different polymers and serve different markets than DuPont’s Tyvek nonwoven fabrics.

The businesses being divested generated $1.3 billion in sales in 2024 and are considered among DuPont’s more raw-material and asset-intensive operations. The sale is expected to make the remaining DuPont business less cyclical, with higher free cash flow conversion and a more focused portfolio.

Under the terms of the agreement, DuPont will receive $1.2 billion in cash, a $300 million note payable, and a 17.5% interest in Arclin valued at $325 million. Mizuho previously estimated that the remaining DuPont business would have a net debt-to-EBITDA ratio below 2x following the transaction.

The sale comes ahead of scheduled teach-in sessions on September 18 for both Qnity Electronics and the remaining DuPont business units.

In other recent news, DuPont De Nemours Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.12, higher than the projected $1.06. Revenue also exceeded forecasts, reaching $3.26 billion compared to the expected $3.24 billion. In a separate development, DuPont announced an agreement to sell its Aramids business, which includes the Kevlar and Nomex brands, to Arclin for $1.8 billion. This strategic move aligns with DuPont’s ongoing efforts to streamline its operations. The deal is with Arclin, a portfolio company of TJC, formerly known as The Jordan Company. These recent developments indicate significant changes for DuPont as it continues to adjust its business portfolio.

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