03:07 PM EDT, 09/19/2025 (MT Newswires) -- DuPont de Nemours ( DD ) looks well-positioned for growth after it completes the planned spin-off of its electronics segment, RBC Capital Markets said in a note e-mailed Friday.

On Thursday, the company hosted its annual investor day and said it expected to complete the spin off of Qnity Electronics in November. DuPont ( DD ) outlined its medium-term financial targets, including an 8% to 10% compound annual growth rate through 2028 for adjusted earnings per share and a 3% to 4% organic sales growth CAGR.

Given that the outlook does not take into account buybacks, repurchases are expected to create incremental earnings upside potential, RBC said in a client note.

"Overall, (DuPont ( DD )) appears set up well for growth post-Qnity spin, as (it) expects water/healthcare to continue GDP+ growth, and legacy industrials/building inline with GDP," RBC analyst Arun Viswanathan wrote. "(DuPont ( DD )) reiterated its strong capital return track record, which we think implies buyback opportunities."

Last month, DuPont ( DD ) agreed to sell its Aramids business, which includes heat-resistant fiber brands Kevlar and Nomex, to materials science company Arclin in a deal worth roughly $1.8 billion.

"DuPont ( DD ) is entering a new chapter as a more simplified, agile and high-performing multi-industrial company," Chief Executive Lori Koch said in a statement Thursday. "We have a clear path to our 2028 financial targets which includes solid revenue and earnings growth along with robust cash generation."

RBC maintained its outperform rating on the DuPont ( DD ) stock, with a $94 price target.

"While it remains open to larger scale acquisitions that pass internal hurdles, small, bolt-ons in water and healthcare remain the main focus for both adjacent growth, and (total addressable market) expansion," Viswanathan said.

Separately, Qnity said Thursday its TAM exceeds $30 billion. "Following the intended separation of Qnity in November, we'll be a leading global pure-play technology provider for semiconductors," CEO-elect Jon Kemp said in a statement.

Qnity is expected to be listed on the New York Stock Exchange under the ticker symbol Q.

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