DuPont upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded DuPont to Overweight from Equal Weight with a price target of $103, up from $80. The analyst expects multiple expansion over the next 12-24 months should be driven by the company’s tax-free separation into three separate public companies. DuPont’s consistent growth over cycles can drive multiple expansion which has historically been challenging for diversified chemical companies to generate, the analyst tells investors in a research note. Wells estimates comps for the three new entities should support multiples in the mid-to-high teens. While it could take two years to execute the transaction, volume growth for each of the businesses should accelerate early on in an economic recovery, which tends to drive out performance for chemical companies, the firm adds.