Analyst Leo
Larkin of S&P Capital IQ downgrades DuPont (NYSE: DD) from BUY to
HOLD. The target price is set to $55.
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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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