Friday, 20 April 2012

S&P Capital IQ Downgrades DuPont from BUY to HOLD

Analyst Leo Larkin of S&P Capital IQ downgrades DuPont (NYSE: DD) from BUY to HOLD. The target price is set to $55.
In a research note published this morning, the analyst mentions that the downgrade in rating is based on valuation. The analyst believes that DuPont’s stock is no longer undervalued following the recent rise in the share price. The analyst, however, believes that the company’s EPS would grow in the long term due to a secular increase in demand for chemicals and agricultural products. The company is expected to generate sufficient free cash to pursue acquisitions and maintain the current dividend, the analyst says. The upside to DuPont’s current target price is modest, the analyst adds.

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