Shares of DuPont de Nemours, Inc. have experienced a decline of more than 21% since the announcement of U.S. tariffs, making it an undervalued title with attractive upside potential, according to some analysts. KeyBanc currently raised its recommendation to "Buy" with a target price of $81, up nearly +33% from the current level of around $61.
- Key segments: electronics, specialty materials, water technology
- Growth potential in water and electronics described as "prime"
- Generates stable free cash flow, capable of growth across the business cycle
- Net debt to EBITDA ratio below 2 = stable financial structure
- DuPont $DD can thus afford to invest even in times of heightened volatility
- 43% of revenue generated in Asia - a long-term growth region
- But also higher sensitivity to trade tensions and tariffs
Current price (DD)
~61.15 USD
Target Price (KeyBanc)
81 USD
Annual decline since the tariff announcement
-21 %
Analysts' consensus "Buy"
81 %
Previous target price (consensus)
101 USD (now 96 USD)
DuPont $DD is currently in a revaluation phase - while the market is sensitive to tariff risks, the underlying business remains robust and performing. The company has a healthy balance sheet, quality value-added segments and long-term growth potential.
If trade tensions ease and the macroeconomic environment stabilizes, DuPont stock could be a strong candidate to rebound from the bottom. For the long-term investor, it may be a quality addition to a portfolio with defensive characteristics and growth potential.
I don't find it that interesting, but if I had to pick a stock in this sector, I'd probably choose $MMM.
The stock is clearly undervalued, but the question is how long the decline will last. It's possible that the tariffs will hurt the company and they won't do well in the long run.