Friday, September 24, 2010

Susquehanna Initiates Coverage on DuPont (NYSE:DD)

Susquehanna initiated coverage on EI DuPont de Nemours & Co. (NYSE:

DD), giving them a "Positive" rating, believing their strong performance will not subside.

Even with the outperformance through August, the company says they should continue to perform at these levels, citing low P/E in comparison to peers as well as low historical averages.

Also noted were the structural changes by DuPont's CEO which should continue to position them to meet their growth and earnings guidance.

DuPont has shown that in the seed business, where they've made an end-run around Monsanto (NYSE:MON) and gained market share against superior seeds with more traits, by emphasizing price and taking advantage of disgruntled farmers.

They did it by asking farmers if the numerous traits of Monsanto were worth the extra cost. A growing number of farmers don't believe it is.

DuPont Closed Thursday at $44.42, dropping $0.20, or 0.45 percent.

The firm has a 12-month price target of $52 on DuPont.

No comments: