DuPont Earns an Upgrade at Citi

Citi analysts upgraded DuPont (NYSE:DD) to Buy from Neutral, raising their price target to $95 from $85. The analysts noted that DuPont shares had a positive reaction following the recent announcement of splitting into three publicly traded companies. Investor feedback was favorable, highlighting that the flexibility of operating as standalone businesses could create value through focused growth and portfolio clarity.

Additionally, the analysts see potential benefits from a recovery in the electronics sector and the reduction of destocking in more challenged markets. The primary concern among investors is the valuation, particularly regarding the Electronics segment and the New DuPont (RemainCo). However, after reassessing the sum-of-the-parts valuation in the new structure, the analysts upgraded DuPont to Buy with a new price target of $95. They expect solid earnings from the electronics segment over the next 18 months and anticipate that more details on the separation could act as positive catalysts throughout the year.