A Look Ahead At DowDuPont's Catalysts Over The Next Year; Analyst Initiates At Buy


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Bank of America's Steve Byrne initiates coverage of DowDuPont Inc (NYSE:DWDP) with a Buy rating and $78 price target amid multiple catalysts for the next 12 to 18 months.

DowDuPont will be releasing its pro forma financials by Nov. 15 and this will help investors in better understanding the company's recurring earnings power, Byrne commented in his initiation note. On top of that the output from the board review of the "spincos" will likely be nearly completed and a final decision is expected within the next three months. Also, the board is likely to finalize the company's dividend policy and it is reasonable to assume a dividend rate of 38 cents per share per quarter will be announced.

Meanwhile, the freshly merged entity's petchem capacity will likely begin within the next six months and this alone could add $1 billion to EBITDA, the analyst continued. The company itself expects to capture 70 percent of run-rate synergies within year one and the full run-rate in two years.

In terms of financials, DowDuPont's expectations to achieve $20 billion in EBITDA in 2019 could actually be a conservative figure as it doesn't assume the $1 billion in targeted revenue synergies, the analyst also noted. As such, there exists a path for the stock to move as high as $100 per share over time.

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27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorLong IdeasCommoditiesTop StoriesMarketsAnalyst RatingsTrading IdeasChemical CompanieschemicalsDow DupontSteve Byrne