Barclays downgrades DuPont stock on limited upside from spin-off strategy By Investing.com
On Monday, Barclays (LON:) issued a downgrade for DuPont (NYSE:) stock from Equalweight to Underweight, adjusting the price target to $84 from $88. The firm’s analysis suggests that the potential benefits of DuPont’s breakup are already reflected in the current stock price, leaving little room for additional gains.
The downgrade is based on a sum-of-the-parts evaluation, which indicates the high valuation multiples for DuPont’s segments in Water, Electronics, and the remaining industrial businesses may not be sustainable.
The firm points out that while these segments are currently assigned high multiples similar to pure-play companies, it’s uncertain whether DuPont’s spin-off entities will immediately warrant such…
