DD Faces Headwinds in Prized Ag Platform

Analysts at Credit Suisse downgrade El DuPont de Numours & Co (NYSE: DD) from “outperform” to “neutral.” The target price for DD has been reduced from $36 to $31.

According to Credit Suisse, the possibilities of DD meeting the 20% EPS growth forecast for 2009-2012 are under threat due to a delay in the launch of the company’s Optimum GAT for corn. The analysts expect the product, which allows farmers to use multiple herbicides to control weeds, to be commercialized only around 2015.

DD’s stock may not outperform over the forthcoming 12 months due to its rich valuation, the earnings headwinds and the recent setback in the company’s Ag platform. Credit Suisse expects El DuPont de Numours to post solid results for 4Q09 and 1Q10, driven by improving trends in the chemical industry.