On Friday, Jefferies updated its outlook on DuPont (NYSE:DD) shares, increasing the price target to $78 from $70 while maintaining a Hold rating on the stock. The firm's analyst cited DuPont's first-quarter earnings per share (EPS) of $0.79, which surpassed the consensus by $0.15 and their own forecast by $0.16.
The company's projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 were slightly adjusted upwards, now expected to be between $2.9 billion and $3.1 billion.
The analyst noted that the destocking activities in Water and Industrial segments, which had been affecting the company's performance, likely concluded in the first quarter of the year.
An improvement in these areas is anticipated to begin in the second quarter of 2024. Additionally, there is growing optimism for a sustained recovery in the Electronics and Semiconductors sectors, which are important markets for DuPont.
Despite the positive developments, the analyst expects that DuPont's second-quarter EBITDA will likely show a year-over-year decline. However, the outlook for the second half of the year is more favorable, with predictions of better profit and margin comparisons.
The report included a detailed outlook for the upcoming quarters, suggesting that the company's financial health is on the mend after a challenging period. The updated price target reflects a more positive view of DuPont's future performance, taking into account the recent earnings beat and the expected sector recoveries.
Investors and market watchers will be looking to see if DuPont's performance aligns with Jefferies' projections, particularly in the second half of 2024 when the company is expected to experience improved financial results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.