DuPont Earnings: End of Inventory Destocking Should Help Recovery Particularly in Electronics

We maintain our DuPont $85 per share fair value estimate and narrow moat rating after incorporating the firm's detailed fourth-quarter results into our valuation model. The company reported high-level results in late January. We continue to view 2024 as a transition year for DuPont. As destocking began to weigh on volumes and profits at different points in 2023, we expect a varied recovery throughout 2024. However, as the year progresses, we expect the end of destocking and a return to growth in line with end-market demand. We expect 2024 operating EBITDA to be just below 2023. We forecast a recovery in the electronics and industrial segment, where destocking began earlier in 2023 and is offset by a decline in water and protection, where destocking will continue through much of 2024.