DuPont price target raised to $80 from $74 at BofA

BofA analyst Steve Byrne raised the firm’s price target on DuPont to $80 from $74 and keeps an Underperform rating on the shares. In the firm’s view, DuPont’s decision to split into three companies with tax-free spins of the Water and Electronics businesses has some logic. Investor interest in DuPont has tended to be modest, which BofA believes has been due to the uncertain magnitude of PFAS liabilities and the diversity of businesses constraining valuation to well below specialty chemical peers. Thus, if a deal were to happen on the announced terms, the breakup would create pure-plays in two end markets with significant long-term growth potential, driven by water shortages and societal electrification, and which the firm believes could trade at higher multiples.