DuPont de Nemours, Inc.

DuPont’s stock price has surged past our target price and is witnessing a strong momentum after the company posted a solid set of results this quarter in an extremely challenging environment. DuPont managed an all-around beat despite the persistent inflation globally and uneven macro conditions. The revenue growth of the company included solid organic growth. The demand of customers remains robust across most of its key end markets. There was a double-digit volume increase in Auto and Water Adhesives, Semi, Laird, Vespel, and Kalrez. The volume growth reflects strong demand mainly in general industrial, water, and semiconductor. On a regional basis, DuPont delivered organic growth in sales in all four regions, that is led by volume increases in Asia Pacific and North America. Growth in sales was led by the Semiconductor Technologies that increased mid-teens organically as robust demand continued the ongoing transition led to high semiconductor fab utilization and advanced new technologies along with the growth in data centers and 5G communications. We provide the stock of DuPont with a ‘Buy’ rating and a revision in the target price.