TSX lower as gold rally takes a breather
Investing.com -- Deutsche Bank named DuPont (NYSE:DD) a “Catalyst Call Buy,” pointing to the upcoming second-quarter earnings as a potential trigger for shares ahead of the planned spin-off of its electronics business, Qnity, on November 1.
The firm said DuPont shares trade at a steep 40% discount to its estimated sum-of-the-parts value, with the stock closing at $74 versus a calculated value of $124.
Even after accounting for a $1 billion PFAS-related liability, DuPont’s valuation remains well below peers, trading at 11.4 times estimated 2025 EBITDA.
Deutsche Bank (ETR:DBKGn) argued that the separation of Qnity could re-rate the stock closer to peers like Entegris (NASDAQ:ENTG), which trades at a significantly higher multiple.
The spin is also expected to leave behind a more focused, better-performing industrials business.
The broker expects the second-quarter release to reinforce confidence in the timeline, likely including a formal reiteration of the November 1 separation date, which could draw investor attention to the narrowing window before the transaction.
Deutsche Bank maintains a $90 price target, implying roughly 21% upside from current levels.
It sees the earnings release, separation progress, and potentially upbeat third-quarter guidance as key near-term catalysts.