DuPont de Nemours: A Strong Buy with 18.75% Upside Potential

The materials sector has been a battleground for investors in 2025, but one name stands out as a must-buy: DuPont de Nemours (DD). With a 18.75% upside potential to its average price target, a majority of “Buy” ratings, and a track record of outperforming expectations, this stock is primed for a comeback. Let's dive into why this is a “Strong Buy”—even as some analysts remain cautious.

Analysts Are Bullish—Even If the Consensus Isn't Yet

The numbers speak for themselves: 9 out of 12 analysts rate DD a “Buy” or higher, while only 1 has a “Sell.” The consensus rating is a “Moderate Buy”, but that's a misnomer. The average 12-month price target of $95.00 (a 30.2% premium to its current price of $72.95 as of June 2025) suggests Wall Street is betting on a breakout. Even the most skeptical analyst, Bank of America, raised its rating to “Equal Weight” in late 2024 after DD delivered on its spin-off promises.

DuPont de Nemours' stock price performance over the past 12 months

Why the Optimism? Three Key Catalysts

1. Earnings Resilience: DD has beaten earnings estimates for 5 straight quarters, even as the broader materials sector stumbled. For 2025, analysts project EPS of $4.27—up 6% from 2024—and revenue growth of 3.29% to $12.79 billion. These aren't jaw-dropping numbers, but they're consistent, and in a volatile market, consistency is king.
2. Spin-Off Momentum: The separation of its Electronics & Imaging division (planned for late 2025) and ongoing cost-cutting have freed up capital. Royal Bank of Canada (RBC) recently raised its price target to $102.00, citing “operational clarity” post-spin-off.
3. Sector Leadership: While peers like Dow (DOW) and PPG (PPG) face headwinds, DD's focus on high-margin specialty chemicals—think electric vehicle coatings and semiconductor materials—positions it to outpace the market cycle.

Addressing the Skeptics: Risks and Rebuttals

Critics point to a 52-week low of $47.00 and lingering macro risks like interest rate volatility. True, the stock is down 18% from its 2025 peak of $88.90. But consider this:
- Valuation: DD trades at 17x forward earnings—a discount to its five-year average of 22x.
- Catalysts Ahead: The spin-off is a near-term driver, while its $1 billion R&D budget targets high-growth markets like renewable energy.
- Analyst Momentum: Deutsche Bank and Citigroup recently upgraded DD, noting it's undervalued relative to its peers.

The Bottom Line: Buy Now, Wait for the Catalysts

At $72.95, DD is trading well below its average price target of $95.00. Even the most pessimistic analyst (with a $80.00 target) sees 10% upside, while bulls like RBC and Wells Fargo are aiming for 40% gains.

Action Items:
- Buy now for a long-term position. The spin-offs and sector recovery could push this stock to $100 by year-end.
- Set a stop-loss at $65 to protect against a sector-wide selloff.
- Watch earnings: A beat in Q3 (due out in October) could spark a rally.

DuPont de Nemours isn't a get-rich-quick play, but it's a strategic buy for investors willing to look past short-term noise. The materials sector will rebound—and when it does, DD will lead the charge.

DuPont de Nemours' price target distribution versus current price

Final Call: STRONG BUY with a 12-month target of $95—and upside to $100 if spin-offs deliver.