DuPont (DD) Rally Could Stall this Winter, Jefferies Says

Jefferies analyst Laurence Alexander bumped his price target on DuPont (NYSE: DD) to $72.00 (from $64.00) amid activist activity but maintained his Hold rating saying the rally could stall this winter.

"DuPont shares may be able to rally further on enthusiasm near term, but we expect a stall this winter on questions of demand trends, validity of comparables, and longer-term strategy," he said.

He added, " If DuPont's Ag business (~36% of PTOI in 2015E) can support 10.3x EBITDA, IB/Nutrition 13.3x, and TiO2 7.3x, the balance of DuPont is currently valued at ~6.4x 2015E (valuing the balance at 8.9x, in line with a basket of large cap chemical peers, would imply fair value of $77). A crude finger exercise, but illustrative in that all three assumptions could be tested in 2015."

The firm cut FY 2014 EPS from $4.05 to $4.00 and FY 2015 EPS from $4.90 to $4.70.

For an analyst ratings summary and ratings history on DuPont click here. For more ratings news on DuPont click here.

Shares of DuPont closed at $69.25 yesterday.

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