DuPont de Nemours (DD) is facing favorable market trends for its water and health care businesses, even as construction markets are a "key swing factor" that is largely outside of its control, Morgan Stanley's research division said in a note to clients Wednesday, after DuPont reported its Q4 earnings.

Based on the Q4 report, Morgan Stanley's researchers now expect DuPont to post 2026 earnings of $2.28 per share, up from their previous estimate of $2.10 and above consensus estimates of $2.15, and expect the company to deliver 2027 earnings of $2.45 per share, up from the researchers' previous estimate of $2.35, also above consensus forecasts of $2.43.

Following the results, Morgan Stanley researchers maintained their 'equal-weight' rating on DuPont but lifted their price target on the company to $52 from $44, citing increased earnings forecasts and higher year-to-date peer multiples.

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