DuPont de Nemours, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst John McNulty from BMO Capital maintained a Buy rating on the stock and has a $107.00 price target.
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John McNulty has given his Buy rating due to a combination of factors related to DuPont de Nemours’ strategic business decisions and financial outlook. The company announced the sale of its Aramid business, which includes Kevlar and Nomex, to Arclin for $1.8 billion. This transaction is expected to enhance DuPont’s financial flexibility and improve its business portfolio by removing a lower-margin, cyclical business segment. The updated business mix will be more balanced, with nearly equal contributions from Water & Healthcare and Industrial segments, potentially leading to a modestly higher valuation post-split.
Furthermore, McNulty notes that the sale will not affect the timing of DuPont’s planned split from QNITY or its upcoming capital market day. The transaction is expected to close in the first quarter of 2026, and the proceeds will be used to strengthen the company’s financial position. Additionally, DuPont’s industry-leading platforms in electronics, water, healthcare, and safety are aligned with secular growth themes, which should enable the company to grow at rates exceeding GDP with superior margins compared to its peers. These strategic moves and growth prospects underpin McNulty’s Buy rating for DuPont.