CFRA sticks with buy rating on DuPont after earnings, but lowers price target and estimates

CFRA sticks with buy rating on DuPont after earnings, but lowers price target and estimates

CFRA said Thursday it’s sticking with a buy rating on shares of Dupont de Nemours Inc. , after the company offered guidance for 2020 that lagged estimates. Analyst Christopher Muir lowered his stock price target by $11 to $65 and cut per-share earnings estimates. Our target is a 17% peer-discount 17.1x our ’20 EPS estimate, which we think is warranted by our view of a below-peer three-year EPS growth rate,” the analyst wrote in commentary. “Looking ahead, we see lower segment results in ’20 driven by nylon headwinds in T&I and the absence of certain gains recorded in 2019, offset by synergies, cost reductions, and other items.” DuPont said slack demand for nylon will weigh on 2020 earnings. Weak industrial production has been cited by other manufacturers as a headwind this year, including 3M and UPS . DuPont shares slid 8.1% after its report and are down 37% in the last 12 months, while the S&P 500 has gained 21%.

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