DuPont's (NYSE:DD) Danisco Acquisition Reduces Earnings Volatility

The acquisition of Danisco for $6.3 billion by DuPont (NYSE:DD) fills in some important holes of DuPont, especially in their farm-to-fork Ag & Nutrition strategy, says Jefferies.

They concluded it "fills in gaps in DuPont's farm-to-fork Ag & Nutrition strategy, adds capabilities in enzymes and fermentation, and should make its decade-long industrial biotech foray effectively self-funding and should extend beyond the high-profile effort in cellulosic ethanol into biobased materials and chemical building blocks."

Jefferies maintains a "Buy" rating on DuPont, which closed Tuesday at $48.97, down $0.06, or 0.12 percent. They raised their price target on them from $55 to $58.