DuPont (DD) PT Lowered to $75 at UBS

UBS analyst Joshua Spector lowered the price target on DuPont (NYSE: DD) to $75.00 (from $103.00) while maintaining a Buy rating.

The analyst commented, "There are two major changes since our last update. First, the size and scale of potential reciprocal tariffs are large enough to have an impact on electronics demand, which creates downside risk to our base case. Second, the threat of China retaliation against specific companies is now a more real risk (link). We saw China last week announce a competition probe of DuPont's Tyvek business in China (link). This is small at <1% of DD's sales, but opens up risk of further escalation to the larger electronics exposed sales. We estimate DD's China sales exposure at ~19% of total, and ~17% in total local production for local demand. At first, local for local was a benefit as it avoids tariffs, now that exposure has become a risk if China pushes forward. Our updated analysis shows that we think a very large amount of this potential risk is priced into DD's stock, but understand this is an overhang that will limit investor appetite to own DD shares until there is a de-escalation of US/China tensions. Within this note we update our estimates, price target, and present a range of scenarios to consider."

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