DowDuPont was formed on Sept. 1, 2017, from the merger of Dow Chemical Co with E I Du Pont De Nemours And Co.
As such, Argus initiated coverage of DowDuPont with a Buy rating and a $81 price target.
Analyst Bill Selesky noted that DowDuPont now has an industry-leading position in all three operating segments, namely Agriculture, Material Science and Specialty Products. Therefore, the analyst expects the combined company to benefit from its increased size and scale (see Selesky's track record here).
See also: A Look Ahead At DowDuPont's Catalysts Over The Next Year; Analyst Initiates At BuyArgus estimates the new DowDupont to report earnings per share of $3.35 for 2017 and $4.06 for 2018, assuming flat to higher global GDP, flat to higher commodity prices and stable global industrial production. The consensus estimates call for earnings per share of $3.31 for 2017 and $4.03 for 2018.
The firm clarified that its price target of $81 implied a potential return of 16 percent, excluding any dividend payment.
"We expect a formal announcement about DWDP's dividend program to be made shortly," the firm said.
Related Link: Believing 17% Upside Lies Ahead, Cowen Upgrades DowDuPont _______ Image Credit: By Brian Reading - Own work, CC BY-SA 3.0, via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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