On Friday, Wolfe Research analysts revised their outlook on DuPont (NYSE:DD), elevating the stock from Peer Perform to Outperform and setting a new price target of $91.00. The firm expressed optimism about the company's future, anticipating a clearer growth trajectory for its Electronics & Imaging (E&I) segment, as well as for Water & Protection (W&P) in 2025 and 2026. Wolfe Research highlighted the potential for margin expansion, which could provide additional upside to their forecasts.
The analysts noted that while there are macroeconomic challenges expected in the first half of the year, the second half of 2025 should present a stronger thesis for E&I and continued progress for W&P. The upgrade reflects confidence in the company's ability to navigate these challenges and emerge with robust growth.
Wolfe Research also indicated interest in the upcoming changes to DuPont's management and Board of Directors composition as a result of the planned spin-off. The firm stated that despite these pending changes, they are comfortable with the company's current narrative and direction.
The updated price target of $91.00 represents a significant increase and suggests that Wolfe Research sees considerable value in DuPont shares moving forward. This adjustment in the stock's rating and price target may influence investor sentiment and market activity related to DuPont shares.
DuPont, a global innovation leader with technology-based materials and solutions, is expected to benefit from these positive projections as investors and stakeholders evaluate the company's potential for growth and profitability in the coming years.
In other recent news, DuPont showcased a robust financial performance in Q3 2024, with consolidated net sales reaching $3.2 billion, indicating a 3% organic sales growth year-over-year.
The company's operating EBITDA saw an 11% increase to $857 million, while adjusted earnings per share (EPS) surged by 28% to $1.18. The electronics and industrial segment experienced double-digit growth, driven by demand for advanced chips and AI technologies.
DuPont has also expedited the timeline for separating its electronics and water businesses, with board member announcements expected by Q1 2025. In the recent earnings call, DuPont provided Q4 2024 guidance estimates that include net sales of approximately $3.07 billion and operating EBITDA of $790 million, with an adjusted EPS of $0.98. The full-year 2024 forecasts have been increased, now expecting an operating EBITDA of $3.125 billion and adjusted EPS of $3.90.
Meanwhile, BMO Capital Markets continues to endorse DuPont shares with an Outperform rating, despite lowering the price target from $107.00 to $105.00. The adjustment comes after DuPont's decision to retain the Water business within the newly restructured company. On the other hand, Citi has raised its price target for DuPont to $98 from $96, maintaining a Buy rating on the stock. These are among the recent developments that underline DuPont's strong financial health and strategic progress.
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