Mergers & Acquisitions

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>>> DuPont Jumps on Morgan Stanley Initiation Following Separation


TheStreet

Tony Owusu

Jun 3, 2019


https://www.thestreet.com/investing/stocks/dupont-jumps-on-morgan-stanley-initiation-following-separation-14979186


Analysts at Morgan Stanley are bullish on the newly independent DuPont (DD) following its separation from DowDuPont, initiating coverage on the company with an overweight rating and $78 price target.

DuPont is now an independent company after DowDuPont completed a three-way split that became official on June 1. Morgan Stanley analyst Vincent Andrews believes that the company compares well to fellow industrial company 3M (MMM - Get Report) .

"DuPont and 3M have meaningful overlap across DuPont's segments, as well as a similar geographic and end market mix. We forecast revenue growth profiles for both companies at global GDP plus rates (~3.5%)," Andrews wrote. "We expect all of DuPont's metrics to improve both organically (through existing cost out / synergy programs) and inorganically (as the company shifts $2B of presumably below company average EBIT margin sales into a "noncore" segment while it seeks buyers for those assets)."

Separately, DuPont celebrated its new independence by announcing a $2 billion share buyback program that expires on June 1, 2021.

DowDuPont completed a merger in 2017, but now the company has been broken into three different entities consisting of Dow Inc. (DOW), DuPont, and Corteva Agriscience.

DuPont shares were rising 9.1% on Monday while Dow shares climbed 1.56%. Corteva

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