UPDATE: J.P. Morgan Upgrades DuPont on Increased 2013 EPS Estimate, 2014 EPS Forecast

In a report published Wednesday, J.P. Morgan analyst Jeffrey J. Zekauskas upgraded the rating on DuPont DD from Neutral to Overweight, and raised the price target from $60.00 to $67.00. In the report, J.P. Morgan noted, “We are upgrading DuPont from Neutral to Overweight and raising our December 2014 price target from $60 to $67. We are increasing our 2013 EPS estimate from $3.80 to $3.86 and our 2014 EPS forecast from $4.25 to $4.35. DuPont is a solid generator of free cash flow (6.4% for 2014E with a 3.0% dividend yield); it is leveraged to acceleration in global economic growth; and it has a strong portfolio of businesses anchored by Agriculture, Safety and Protection, and Electronics with favorable 2014 prospects. DuPont indicated that its net pension liabilities could decrease $2-3 billion by the outset of 2014 due to changes in interest rates. Capital appreciation potential for 2014 is about 12%, which combined with a 3% dividend yields a 15% annual return.” DuPont closed on Tuesday at $60.17.
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Posted In: Analyst ColorUpgradesAnalyst RatingsJ.P. MorganJeffrey J. Zekauskas
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