Deutsche Bank Reiterate Buy, $55 PT on DuPont
In a note out today, Deutsche Bank reiterated a buy rating and $55 price target on Dow component DuPont (NYSE: DD), implying significant upside from where shares of the chemicals maker currently reside.
“DuPont held its 2011 Investor Day at its HQ in Wilmington on December 13. At the meeting DuPont provided '12 EPS guidance of $4.20-$4.40, up 7-17% vs the midpoint of recently lowered '11 guidance of $3.87-$3.95 (guidance was $3.97- $4.05 prior to last weeks' earnings warning). While the midpoint of '12 guidance ($4.30) is $0.07 above consensus, it is $0.05 below consensus prior to last weeks' warning. DuPont is targeting '12 sales of $40-$42B, up 5-10%, on 2-3% global GDP growth and 4% IP growth. ‘12 guidance includes a $0.17 headwind from pension and a $0.15 headwind from Pharma (vs a similar $0.15 headwind in '10) with the drop in Pharma earnings offset by accretion from Danisco. DuPont also adjusted its'10-'15 target of 12% CAGR EPS growth to “long-term” (~5 years) CAGR EPS growth of a similar 12% underpinned by “7% long-term” sales growth,” Deutsche Bank said in the note.
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