J.P.Morgan Initiates Overweight Rating on DuPont (DD)

J.P.Morgan is out with a note, where it reported an “overweight” rating on DuPont (DD); and has increased its target price to $50.00 from $44.00. DuPont generated increased sales and lower expenses, which drove the company’s higher-than-anticipated EPS outperformance. J.P.Morgan stated, “We lifted our 2011 EPS projection from $3.05 to $3.35 and our 2012 projection from $3.50 to $3.75 based on higher projections for Performance Materials, Performance Chemicals, Agriculture, and Electronics.” Analysts at J.P.Morgan added, “The DuPont of 2010 is different from the DuPont of old in five respects: 1) The agricultural business has moved from being a loser of market share to market share gainer due to yield increases in Seeds, a higher degree of client service, and enhanced customer sensitivity; 2) The Electronics business is in step with the faster industry growth trends: Compare DuPont’s current successful photovoltaic effort with its old unsuccessful OLED venture; 3) There is a more coherent volume growth strategy built upon Asian and South American market penetration; 4) There is greater focus in growing DuPont’s best businesses: Kevlar, Tyvek, Nomex, Pioneer, Titanium Dioxide, and others; and 5) There is a more coordinated team management effort across the businesses, which is visible in DuPont’s improvement in incremental margins.”