DD: DD Successfully Completes GICS Reclassification; Expect Positive Reaction and Maintain Outperform

Research evidence excerpt

DD: DD Successfully Completes GICS Reclassification; Expect Positive Reaction and Maintain Outperform

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Arun Viswanathan, CFA (Analyst)

Adam Hamilton (AVP)

Brian Dong (Senior Associate)

July 19, 2026

DuPont de Nemours, Inc.

DD Successfully Completes GICS Reclassification; Expect Positive Reaction and Maintain

Outperform

NYSE: DD | USD 135.29 | Outperform | Price Target USD 180.00

Sentiment: Positive

Maintain Outperform. We view Friday's announcement of the GICS reclassification of DuPont (DD) from Specialty Chemicals to

Industrial Conglomerate as a positive, given the stock closed higher on the news released late Friday (7/17) afternoon. In our

view, the reclassification matters for a few reasons: first, we think this has the potential to drive meaningful multiple expansion,

as industrial conglomerate/multi-industry peers have historically traded at higher valuation multiples (DD's historical EV/EBITDA

has been in the 9–16x EV/EBITDA and ~12-20x P/E range vs. multi-industry peers in the ~12-17x+ EV/EBITDA and ~20–25x on P/

E), although DD's P/E multiple has appreciated somewhat over the past few years given its continued portfolio transformation.

Additionally, index-driven flows from generalist and sector-specific funds could incrementally support the stock. Second, and

perhaps more importantly, we think this serves as external validation of the portfolio transformation and that DD management

has been executing well, with a shift away from both specialty and commodity-oriented chemicals exposure toward higher-

growth, higher-margin electronics, water, and industrial end-markets. We have been positive on DD and see the reclassification

as consistent with the thesis outlined in our recent notes.