DuPont's Forecast Dims: Analysts Revise Ratings And Expectations In Light Of Softening Market Conditions
Portfolio Pulse from Lekha Gupta
DuPont de Nemours Inc (NYSE:DD) was downgraded by BMO Capital Markets analyst John P. McNulty from Outperform to Market Perform with a reduced price target of $72 from $80. DuPont's preliminary Q4 net sales were approximately $2.90 billion, slightly below the consensus of $3 billion, and adjusted EPS was between $0.85 and $0.87, in line with the $0.85 estimate. The company expects Q1 net sales of around $2.8 billion, below the $3.04 billion estimate, and adjusted EPS of about $0.63 to $0.65, significantly lower than the $0.88 estimate. McNulty anticipates the first quarter to be the bottom for earnings, with the rest of the year's guidance also below his expectations. He has reduced the 2024 and 2025 EBITDA estimates and cut EPS estimates to $3.33 for 2024 and expects $4.10 in 2025. Wells Fargo also downgraded DuPont to Equal-Weight from Overweight with a price target of $69, down from $85. DuPont's shares dropped by 0.70% to $63.75.
January 25, 2024 | 7:46 pm
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DuPont de Nemours Inc was downgraded by BMO Capital Markets and Wells Fargo, with reduced price targets due to lower than expected Q4 sales and disappointing Q1 guidance. Shares fell by 0.70%.
The downgrades by BMO Capital Markets and Wells Fargo, along with the reduced price targets, reflect a negative outlook on DuPont's financial performance. The reported preliminary Q4 sales and Q1 guidance that fell short of estimates are likely to dampen investor sentiment in the short term, leading to a potential decrease in stock price. The 0.70% drop in share price indicates an immediate negative reaction to the news.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100