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Analysts’ Views on DowDuPont before Its 4Q17 Earnings

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Analysts’ consensus on DowDuPont

DowDuPont (DWDP) has been drawing analysts’ attention. As a result, more analysts are actively tracking the stock. Currently, 25 analysts have been actively tracking DowDuPont. Among the analysts, 84% have recommended a “buy,” 12% have recommended a “hold,” and 4% have recommended a “sell.”

Analysts’ consensus target price for DowDuPont has been projected at $81.87, which implies a return potential of 7.70% over the closing price of $76.10 as of January 23, 2018. In the past three months, the target price has shown an upward trend from $78.25 to the current target price. The increased target price suggests that the analysts are bullish on the stock.

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More “buys” and “holds”

DowDuPont posted a strong adjusted EPS (earnings per share) of $0.55 in 3Q17. DowDuPont’s announcement of its next steps to realize the cost-savings synergy of $3 billion could drive the future earnings growth in a big way. DowDuPont’s intended spin-offs into three different companies are expected to add value to the shareholders. DowDuPont’s announcement of a $4 billion share repurchase program is also expected to add value to the remaining shareholders. As a result, analysts are recommending to “buy” or “hold” the stock.

Individual brokerage firms’ price recommendations

  • UBS has recommended DowDuPont with a target price of $89.0, which implies a return potential of 16.80% from the closing price as of January 23, 2018.
  • Bernstein recommends DowDupont with a target price of $90, which indicates a return potential of 18.20% over the closing price of $76.14 as of January 23, 2018.
  • Credit Suisse provided DowDuPont with a target price of $82.0, which implies a return potential of 7.60% over the closing price as of January 23, 2018.

Investors can hold DowDuPont indirectly by investing in the iShares U.S. Basic Materials ETF (IYM), which has invested 24.60% of its portfolio in DowDuPont. The fund also provides exposure to Monsanto (MON), Praxair (PX), and LyondellBasell (LYB) with weights of 7.30%, 6.30%, and 5.30%, respectively, as of January 23, 2018.

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