DuPont’s Strategic Positioning and Resilience Justify Buy Rating Amid Economic Challenges

Jefferies analyst Laurence Alexander has maintained their bullish stance on DD stock, giving a Buy rating on April 15.

Laurence Alexander has given his Buy rating due to a combination of factors influencing DuPont de Nemours. Despite a challenging environment with inflationary pressures from increased raw material costs and a broad-based consumer-led slowdown, DuPont’s local production mitigates the direct impact of tariffs. The company’s strategic positioning in sectors with secular growth trends, such as AI-related electronics and water purification, is expected to support volume growth over the next decade, even as cyclical recoveries in other markets are delayed.
Furthermore, Alexander’s valuation analysis places DuPont’s stock at $88, reflecting a 12.6x NTM EBITDA, which accounts for the ongoing portfolio transformation and assumes 2025 as a potential trough year. The valuation aligns with a sum-of-the-parts analysis, considering the industrial and water businesses at 10x EBITDA and the electronics segment at 12x. This comprehensive assessment underscores the resilience of DuPont’s business model and its capacity to navigate current economic headwinds, justifying the Buy rating.

In another report released on April 15, Mizuho Securities also maintained a Buy rating on the stock with a $80.00 price target.