Du Pont Trades Near Fair Value

Tags: dd
3 Dec 11:16pm
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E.I. du Pont de Nemours & Company (DD) is the world's second leading chemical company. Non-G7 markets, agricultural chemicals and a focus on key customers and new products will drive growth.

Strong performance in the agricultural products market and emerging markets, regular increase in product prices, favorable currency and productivity are likely to outweigh increasing costs as well as weak auto and housing markets. The company is focusing on nearly doubling its earnings growth rate.

However, slowing demand in the U.S. markets is likely to offset growth in the Agriculture market. Du Pont expects second half 2008 earnings per share to be lower than the last year due to higher energy and ingredient costs, lower demand in developed markets, lower income from asset sales and a higher effective tax rate. This compels us to rate the stock a Hold with a target
of $20.00.

Read the full analyst report on DD




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