Nomura Securities Starts DuPont (DD) at Buy
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Nomura Securities initiates coverage on DuPont (NYSE: DD) with a Buy rating and a price target of $78.00, saying they see meaningful value creation potential from merger with Dow.
Analyst Aleksey Yefremov commented, "We expect the DuPont-Dow merger to generate above-trend growth in earnings and FCF for the next three years—exceptional in a macro environment where growth is scarce. Although DD offers an attractive total return of 16%—with dividend, based on our 12-month target of $78—it is management’s integration plan through 2019 that makes the shares even more compelling. The plan centers on aggressive cost cuts and asset spins/divestments, which we estimate should result in equity value compounding at 16% CAGR in 2017-2019. This extended investment horizon along with regulatory approval concerns keeps DD/DOW shares from reflecting the plan’s total return, thereby creating an attractive opportunity for longer-term investors."
Shares of DuPont closed at $69.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Upgrades Essex Property Trust (ESS) to Overweight
- Union Pacific (UNP) PT Raised to $102 at Stifel Following 4Q Report
- Morgan Stanley Downgrades Workiva (WK) to Equalweight, Says Owning The Stock Could be Challenging In 2017
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesNomura, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!