Analyst consensus on DowDuPont
As of October 24, 2017, 21 analysts were actively tracking DowDuPont (DWDP) stock. Of these, 81% of the analysts have recommended the stock as a “buy,” 14% of the analysts have recommended the stock as a “hold,” while the remaining 5% of analysts have recommended a “sell” on DowDuPont.
The analysts’ consensus indicates DWDP’s 12-month target price to be at $78.26, implying a return potential of 8.9% from the closing price of $71.86 as of October 24, 2017.
Analysts clearly support a “buy”
Now that the merger is complete, investors are looking ahead for the much-discussed cost synergy of $3.0 billion and growth synergy of $1 billion. Further, within the next 18 months, the intended spin-offs are expected to add more value to the existing shareholders. This explains why the majority of analysts are recommending a “buy” for DowDuPont.
Brokerage firms’ views and recommendations
- Credit Suisse (CS) has given DWDP a target price of $79.0, implying a return potential of 9.9% from the closing price as of October 24, 2017.
- Deutsche Bank (DB) rated DWDK as a “buy” with a recommended target price of $80, indicating a return potential of 11.3% over the closing price of $71.86 as of October 24, 2017.
- Barclays (BCS) provided DWDP with a target price of $69.0. However, the stock is already trading 4.0% above the recommended target price as of October 24, 2017.
Investors looking to invest in DowDuPont indirectly can invest in the iShares U.S. Basic Materials ETF (IYM), which has invested 24.9% of its portfolio in DowDuPont as of October 24, 2017.