Spinoffs should send them higher

Article Excerpt

We like the outlook for these two industrial firms as they move to simplify their operations. Still, we can only recommend one as a buy right now. DUPONT DE NEMOURS INC. $85 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 430.0 million; Market cap: $36.6 billion; Dividend yield: 1.8%; Takeover Target Rating: Medium; www.dupont.com) took its current form on June 1, 2019, when it set up Corteva (its agriculture business) as a separate company (New York symbol CTVA). In another spinoff, it set up its Materials Science operations as Dow Inc (New York symbol DOW). DuPont now has two divisions: electronics and industrial (52% of revenue) and water and protection (48%). Its products include construction materials such as Tyvek home wrap, fibres such as Kevlar, and electronic displays that are used in bulletproof vests and electronic displays. The company now plans to separate into three independent, publicly traded companies. Under the plan, it would spin off its Electronics business and also its…