DowDuPont’s analyst consensus
The number of analysts tracking DowDuPont (DWDP) has risen to 22 as compared to 21 analysts a month ago. 82% of analysts have recommended a “buy” on the stock, 14% of the analysts have recommended a “hold,” while 4% of the analysts have recommended a “sell.”
The consensus target price for DWDP is $80.20 for the next 12 months, implying a return potential of 13.2% over the closing price of $70.85 on November 20, 2017. The analyst consensus has been on an upward trend from $75 in August to the current target price.
Analysts are recommending a “buy”
DWDP reported adjusted earnings per share of $0.55 in 3Q17, an increase of 10% over the proforma adjusted earnings per share over the previous year. At the same time, the revenues rose 8% to $18.3 billion. DWDP expects a positive outlook across the majority of the markets and is poised to post good growth in revenue and earnings in the upcoming quarters. DWDP’s top priority is to work on cost synergy actions to improve earnings and create value for shareholders. All these factors have made analysts optimistic about DowDuPont.
Individual brokerage firm recommendations
- Bernstein has given DWDP a target price of $90.0, implying a return potential of 27.0% from the closing price as of November 20, 2017.
- Morgan Stanley (MS) has recommended a target price of $80.0 for DWDP, which implies a return potential of 12.9% from the closing price as of November 20, 2017.
- UBS (UBS) has recommended a target price of $82.00 for DWDP, implying a return potential of 15.7% over the closing price of $70.74 on November 20, 2017.
Investors who want exposure to DWDP can invest in the iShares U.S. Basic Materials ETF (IYM), which invests 24.7% of its portfolio in DowDuPont. The other holdings of the fund include Monsanto (MON) with a weight of 7.7% as of November 20, 2017.