JPMorgan Raises Price Target on DuPont; Maintains "Neutral" Rating (DD)

JPMorgan Raises Price Target on DuPont; Maintains “Neutral” Rating (DD)


Though JPMorgan reduced E.I. Du Pont De Nemours And Company’s (DD) fiscal 2013 earnings estimates, the analysts raised the price target on chemical company on Tuesday.

The analysts maintained a “Neutral” rating on DD and now see shares reaching $58, up from the previous target of $50. This new price target suggests a 7% upside to Tuesday’s closing price of $54.02.

A JPMorgan analyst commented, “We trimmed our 2013 EPS estimate for DuPont from $3.75 to $3.70. The sources of our earnings reduction are lower expectations for the Agricultural and the Nutrition & Health business in 2Q:13. Our 2014 EPS forecast remains unchanged at $4.35, and we shaved our 2015 EPS forecast from $5.00 to $4.95. Our 2013 earnings estimate for DD is now (5%) lower versus our initial EPS forecast at the outset of 2013, or $3.70 versus $3.90, previously. We moved our price target out one year from December 2013 to December 2014. We maintain our 9.0x target EBITDA valuation, now applied to 2014E vs 2013E previously, which changes our price target from $50 to $58. We maintain our Neutral rating for DuPont.”

DuPont shares were down a fraction during pre-market trading on Wednesday. The stock is up +20.1% year-to-date.

The Bottom Line
Shares of DuPont (DD) have a dividend yield of 3.33% based on last night’s closing price of $54.02 and the company’s annualized dividend payout of $1.80 per share.

E.I. Du Pont De Nemours And Co (DD) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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