UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on DuPont

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on DuPont DD, and slightly raised its price target from $54.00 to $55.00. Deutsche Bank noted, “Ag momentum offsetting TiO2 weakness. 20% upside to our SOTP value. Buy. DuPont shares rose 2% despite a roughly in-line Q4 release as investors focused on the $0.03 EPS beat (rather than the 69% YoY decline) and positive comments by management on Ag (gaining share in Brazil corn, strong US order book) and TiO2 (potentially bottoming) in 1H13. While 1H13 earnings will be down ~5% YoY due largely to TiO2, we note that TiO2 weakness has been well flagged for several quarters and has a small impact on valuation as investors attach a low multiple to its earnings. With Ag momentum improving, TiO2 a modest 8% of earnings in '13E and our SOTP yielding a $57 value, upside of 20% (with <$3, or 4%, from TiO2), we reiterate our Buy rating.” DuPont closed on Tuesday at $47.82.