DuPont’s agriculture business keeps stock growing
Constant innovation in genetics and agronomics will help biotech sustain its growth curve in the long term.
The agriculture and nutrition-based products division accounts for 32% of DuPont's stock value by our estimates, and we believe that continued expansion of its product line portends solid long-term growth in its agriculture business. DuPont competes with other giants such as Syngenta AG (SYT), Monsanto (MON) and Dow AgroSciences (DOW).
Our current price estimate for DuPont stands at $59, which is about 30% above its current market price.
Through its partnership with Israeli biotech Evogene, DuPont aims to expand its product offering for soybean crops by targeting soybean rust, a fungal pest that can wipe out 80% of affected soybean fields.
DuPont is also working on several new products that it will be introducing this year in the US. One of them is Basis Blend, which is an improvement to its existing Basis herbicide to protect corn crops. DuPont will also introduce Realm Q herbicide, which will help protect corn against broadleaf weeds and grasses. With Realm Q, farmers will be able to protect their crops against weeds as soon as they start growing, instead of having to wait until they are more mature, as is the current practice.
Earlier last month, DuPont reported a consistent increase in corn and soybean yield through its seeds business in the U.S.
We believe that DuPont's focus on constant innovation in genetics and agronomics will help it sustain its growth curve in the long term and support our outlook for the stock.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.