UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on DuPont
In a report published Friday, J.P. Morgan & Co. reiterated its Overweight rating on DuPont (NYSE: DD), and slightly raised its price target from $59.00 to $60.00.
J.P. Morgan noted, “On Thursday, DuPont and The Carlyle Group announced a definitive agreement under which Carlyle will purchase DuPont's Performance Coatings division for $4.9 billion in cash and the assumption of $250M in pension related liabilities. We reduce our F2012 EPS estimate from $4.25 to $3.80 to reflect the Performance Coatings division as part of discontinued operations ($0.27/share) and general corporate expenses ($0.18/share) previously part of Performance Coatings, which will not be part of the transaction. We lower our 2013 EPS estimate from $4.75 to $4.60. Our 2013 forecast reflects the divestiture of the Performance Coatings division as of January 1, 2013 ($0.29/share), and additional corporate expenses ($0.09/share), which we assume to be eliminated by the end of 2Q:13. Our 2013 forecast also reflects the benefit of an estimated $4 billion in after-tax proceeds from the divestiture, which we assume will be deployed for share repurchases ($2.5 billion, or $0.19/share) and debt reduction ($1.5 billion, or $0.04/share). Our 2014 EPS projection is unchanged at $5.35.”
DuPont closed on Thursday at $49.58.
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