Two benefits to DuPont’s spinoff plan

Article Excerpt

Shares of the new DuPont are up over 50% in the five years since the old DowDuPont conglomerate split into three separate companies (Dow, DuPont and Corteva). Even so, DuPont feels it can generate even more value for investors with a plan to spin off its electronics product operations. This new firm will be one the largest pure-play suppliers of advanced materials to computer chipmakers. That could make it an attractive takeover target. The split will also let the remaining firm better focus on its core markets, including products for automotive and medical device manufacturers. DUPONT DE NEMOURS INC. $68 is a buy. The company (New York symbol DD; Manufacturing sector; Shares outstanding: 418.5 million; Market cap: $28.5 billion; Dividend yield: 2.4%; 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…