Dupont: Jefferies initiates coverage with 'buy'
(CercleFinance.com) - Jefferies initiates its coverage of the DuPont stock with a "buy" recommendation and target price of 85 dollars, highlighting the resilience of the chemical group's share resulting from the split of DowDuPont in early June.
"Better operating discipline and a commitment to exploit its freedom to maneuver should make DuPont shares more resilient against a soft macro backdrop," the broker says.
It adds, "We estimate the current productivity cycle and robust FCF could translate a 4.1% sales CAGR into a 12% EPS CAGR through the middle of the next decade, with plenty (>$4bn) of balance sheet flexibility".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Better operating discipline and a commitment to exploit its freedom to maneuver should make DuPont shares more resilient against a soft macro backdrop," the broker says.
It adds, "We estimate the current productivity cycle and robust FCF could translate a 4.1% sales CAGR into a 12% EPS CAGR through the middle of the next decade, with plenty (>$4bn) of balance sheet flexibility".
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.