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DuPont de Nemours (NYSE:DD) faced a sudden downturn on Wednesday, with analysts at Wells Fargo Securities and BMO Capital downgrading the chemical company following a startling profit warning.
As a result, shares of DuPont (DD) plummeted by as much as 14% before paring down the loss in a frenzied market response.
Wells Fargo’s Revision
Wells Fargo made a striking move as they slashed their rating on DuPont (DD) from Overweight to Equal Weight, acknowledging the recent turbulence in the chemical industry. The downgrade came with a sobering assessment from the analysts, who expressed skepticism about the company’s short-term prospects.
BMO Capital’s Downgrade
Similarly, BMO Capital followed suit by downgrading DuPont (DD) from Outperform to Market Perform, aligning with the somber sentiments prevailing among market analysts. The downgrade was accompanied by a sharp downward revision of DuPont’s earnings projections for both 2024 and 2025.
The grim outlook led BMO Capital to adjust DuPont’s (DD) estimated earnings before interest, taxes, depreciation, and amortization to $2.86 billion from $3.19 billion for 2024, and to $3.22 billion from $3.47 billion for 2025 – a substantial correction indicating the severity of the company’s challenges.
Commenting on the matter, Wells Fargo highlighted the potential for growth to rebound in the latter half of 2024. However, the bank’s analysis suggested a lack of near-term catalysts for substantial multiple expansion in the stock, shedding light on the formidable headwinds that DuPont is currently facing.
