Bank of America Reiterates Buy Rating on DuPont

Bank of America has published a report on DuPont DD after 2Q results. In the report, Bank of America wrote, "(1) sales increased 19% y-y to $10.3bn, exceeding our forecast of +11% with ~3% of the variance attributable to Danisco, which we had built into our financial model as of July 1; (2) sales grew at a double-digit pace in all segments and regions on volume growth of 2%, price contribution of 11% and favorable FX of 3%; (3) LatAm led volume growth at +11% followed by Asia at +4%; (4) Electronics volume (+9%) improved most followed by Safety & Protection (+7%); (5) seed sales increased 9%; Pioneer affirmed market share growth in corn and soybean seed in NA; (6) Performance Chemicals posted the largest positive profit variance vs. our model with prices up 28% on TiO2 and fluoroproducts." Bank of America rated DuPont a BUY with a price target of $65.00. DuPont closed Thursday at $52.30.