John McNulty, an analyst from BMO Capital, maintained the Buy rating on DuPont de Nemours (DD – Research Report). The associated price target was raised to $116.00.
John McNulty has given his Buy rating due to a combination of factors, primarily focusing on DuPont de Nemours’ strategic positioning and upcoming corporate restructuring. The company is set to split into two distinct entities, ElectronicsCo and New DuPont, which is expected to unlock significant value over the next 6-12 months. ElectronicsCo is poised to become a leader in the semiconductor and interconnects sector, offering higher growth potential and stability due to its involvement in the evolving chip industry.
New DuPont, on the other hand, will leverage its established technology platforms and recent acquisitions to maintain strong positions in water filtration, healthcare, and industrial applications. These sectors are anticipated to grow at rates exceeding GDP, supported by solid margins and limited capital requirements, leading to robust free cash flow. With the stock currently undervalued and trading at a low multiple, the upcoming split is expected to correct this undervaluation, making DuPont a top pick for investors.
According to TipRanks, McNulty is a 3-star analyst with an average return of 1.9% and a 52.94% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Ecolab, and DuPont de Nemours.
In another report released on February 25, UBS also maintained a Buy rating on the stock with a $103.00 price target.