DuPont's Strategic Split Could Unlock Value, But PFAS Risks Loom Large, Says BofA Analyst
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 28 2024
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Source: Benzinga
- Analyst's Price Target Increase: BofA Securities analyst raised DuPont de Nemours, Inc.'s price target from $74 to $80 while maintaining an Underperform rating.
- Reasoning Behind Split: The analyst sees logic in DuPont's decision to split into three companies to capture higher valuations for Water and Electronics businesses.
- Potential Benefits of Split: DuPont's position in electronics and high R&D spend could lead to a beneficial spin-co EBITDA multiple.
- Investor Interest and Concerns: Investor interest in DuPont has been modest due to uncertainties around PFAS liabilities and diverse businesses affecting valuation.
- Future Outlook and Risks: While the split could create pure-plays with growth potential, PFAS liabilities pose risks, and further consolidation may be delayed due to M&A restrictions.
Analyst Views on RSPM
Wall Street analysts forecast RSPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RSPM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 37.470
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
