Bullish options flow was detected in DD stock on December 9, 2019.
On December 8, 2019, Bloomberg reports that International Flavors & Fragrances (IFF) has emerged as a strong contender to purchase DuPont’s (DD) nutrition division, which could be valued at $25B, Nabila Ahmed, Ed Hammond and Dinesh Nair of Bloomberg report, citing people with knowledge of the matter. International Flavors and Ireland’s Kerry Group (KRYAY) are both negotiating with DuPont and a deal could be reached by year-end, Bloomberg added, citing sources. The transaction will create a new company comprised of the winner bidder’s assets and DuPont’s nutrition business that will be spun off to existing investors via a Reverse Morris Trust, and DuPont shareholders will emerge with a significant stake in the business, the people told Bloomberg. Source: Bloomberg
Following Bloomberg’s report yesterday that International Flavors & Fragrances (IFF) is one of the bidders for DuPont’s (DD) nutrition division, Stifel analyst Mark Astrachan said he understands if investors question if management has “earned’ the right to make a sizable acquisition after Frutarom’s underperformance. However, he believes buying the business would put IF&F at a strategic advantage compared peers, while not being the buyer “would similarly disadvantage the company,” Astrachan tells investors. Such a deal would make International Flavors the largest global specialty ingredients company and allow it to offer a more complete product suite to a broader customer base, said Astrachan. He raised his price target on IF&F shares to $135 from $125 to reflect a higher multiple given the favorable strategic merits of the talked-about deal, though the analyst said he would likely revisit his price target should such a deal not be completed. Astrachan keeps a Hold rating on International Flavors shares.
On December 6, 2019, Vertical Research upgraded DuPont to Buy from Hold.