On Monday, BMO Capital Markets sustained their positive outlook on DuPont shares (NYSE:DD), raising the price target from $112.00 to $116.00, while maintaining an Outperform rating. With a market capitalization of $32.71 billion and revenue of $12.39 billion, the firm’s analysts believe DuPont presents one of the more compelling investment opportunities within the chemical industry, with potential for significant value realization in the foreseeable future. According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period.
The optimism from BMO Capital is driven by DuPont’s exposure to stable and improving end markets, along with the anticipated division of the company into two separate entities: ElectronicsCo and New DuPont. The split, expected to occur within the next 6-12 months, is seen as a key event that could unlock value for shareholders. The strong analyst consensus, currently at 1.8 (Buy), supports this positive outlook.
BMO Capital’s analysis delves into the prospects of both emerging companies, concluding that a $116 target price is justified. With DuPont’s shares currently trading below $79 and at approximately 11.5 times earnings, BMO Capital views the stock as substantially undervalued. They anticipate that the perceived undervaluation will be corrected as the company nears its split and subsequently when the new stocks are assigned their long-term Global Industry Classification Standard (GIC) codes and become part of investor benchmarks.
The firm’s analysts have identified DuPont as a Top Pick, indicating strong confidence in the stock’s performance potential. The upcoming corporate split is seen as a transformative event that could catalyze the stock’s revaluation in the market.
In other recent news, DuPont has introduced WAVE PRO, a new online modeling tool aimed at optimizing ultrafiltration water treatment processes. This tool is part of DuPont’s ongoing efforts to advance water treatment technologies and is available at no cost through their WaterApp platform. In analyst updates, UBS has raised its price target for DuPont to $103 while maintaining a Buy rating, highlighting the company’s strong performance in the electronics sector and organic growth projections for 2025. Similarly, BMO Capital Markets increased its price target to $112, maintaining an Outperform rating, and noted DuPont’s robust fourth-quarter performance in key segments such as Electronics, Water, and Healthcare. Barclays (LON:BARC) also upgraded DuPont’s stock from Underweight to Equalweight, raising the price target to $89, citing strong growth in the electronics segment driven by AI technology applications and semiconductor advancements. Additionally, DuPont announced the appointment of Kurt McMaken to its Board of Directors, bringing his extensive financial and strategic planning expertise to the company. These developments reflect a positive outlook for DuPont, with analysts expressing confidence in its future growth and performance.
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