Deutsche Bank Reiterates Buy Rating on DuPont
Wednesday, September 21, 2021 2:56 PM

Analysts at Deutsche Bank reiterated Buy rating on the shares of EI DuPont de Nemours & Co. (NYSE: DD) as they believe that downside for the latter is less severe than in 2008 due to portfolio upgrades in agriculture and nutrition, a materially lower fixed cost base and strong TiO2 fundamentals. They set a price target of $55 for the stock.


DB analysts state that with the global growth slowdown less evident in DuPont’s end markets, TiO2 prices still rising and Pioneer gaining market share amid strong agriculture market fundamentals, the company is on track to meet or modestly beat their Q3 FY2011 earnings per share estimate of 56 cents by 40 percent. They add that the company expects polymers demand to normalize once destocking ends. They states that with slowdown in electronics, solar materials demand in Q2 and Q3, and demand remaining lumpy due to changing subsidy levels, the firm expects a pick-up in Q4 resulting in 15 percent growth in 2011. They add that the firm expects TiO2 supply and demand to remain tight thru 2014 due to limited new capacity. They state that with DuPont sold out and customers focused on securing adequate supplies, the company is confident it will raise selling prices in Q4 despite pushback from customers. They add that the firm’s portfolio is more resilient than in 2008 as its productivity has improved with $400 million in fixed cost savings in 2010 and $600 million targeted in 2011-2012.


On a year-to-date basis, DuPont has a share performance of -5.53 percent, and as compared to Standard & Poor’s 500, it has an YTD share performance of -2.30 percent.


EI DuPont de Nemours is a leading science and technology company that operates in seven segments including agriculture, nutrition, and electronics and communications. It has a market capitalization of $43.94 billion with a P/E ratio of 12.43. It has more than 932 million outstanding shares.


Shares of DuPont slipped 2.02 percent or 93 cents to trade at $45.03.