Why BofA Just Upgraded DuPont

In a report published Thursday, Bank of America Merrill Lynch analysts upgraded the rating on

E I Du Pont De Nemours And CoDD

from Underperform to Neutral, with a price target of $76, following key developments that have been favorable for the company's risk/reward profile. "We expect DuPont to emerge from its recent proxy battle with activist investor Trian as a leaner, stronger company, irrespective of the outcome of yesterday's shareholder vote in favor of DuPont management," the analysts explained. The recent decline by

Syngenta AG SYT of the takeover bid by Monsanto Company MON brings in opportunity for industry consolidation in the crop protection chemicals and seeds segment. In addition, the US dollar has weakened against the euro since mid-March, while the company has indicated that it intends to payout a quarterly dividend of $0.11 per DuPont share for the Chemours spin off. The company's share price has also declined since mid-March. The EPS estimate 2015 have been maintained while the estimate for 2016 has been raised to reflect the recent weakening of the US dollar and the potential for accelerated cost cuts at the company.

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

25% Off Benzinga's Most Powerful Trading Tools

-

-

-

-

-

-

-