DuPont Price Target Lowered $7 At Jefferies: Here's Why

In a report published Monday, Jefferies analyst Laurence Alexander maintained a Buy rating on E I Du Pont De Nemours And Co DD, while reducing the price target from $91 to $84.

Analyst Laurence Alexander expects DuPont’s shares to remain “range-bound” in the near term, with there being upside into 2016, backed by ongoing capital returns to shareholders and confirmation of improving organic growth across its portfolio.

On Friday, Chemours CC began trading on a “when issued basis.” Current market prices imply a value about $4 per share for DuPont.

In the report Jefferies noted that the performance of DuPont’s shares for the rest of this year hinges on the following considerations:

• Crop Protection: “With weather patterns to date playing out as expected, we believe DuPont needs to demonstrate resilience in the Pioneer portfolio, particularly in Latin America.
• Nutrition: “Choppy consumer spending patterns could continue to present a headwind for Nutrition sales.”
• Another round of structural improvement?
• Tangible cost cuts

The EPS estimates 2015, 2016 and 2017 have been reduced from $4.05 to $3.70, from $4.55 to $3.95 and from $5.45 to $4.55, respectively, to reflect Chemours exiting the portfolio.