DuPont (NYSE:DD) expanded its research partnership with Evogene to increase its product offerings for soybean farmers as well as unveiled new product improvements that should support continued growth in corn and soybean yield through its seeds business in the U.S. The agriculture and nutrition based products division accounts for 32% of the company’s stock value by our estimates, and we believe that continued expansion of its product line portends solid long-term growth in its agriculture business. DuPont competes with other giants such as Syngenta AG (NYSE:SYT), Monsanto (NYSE:MON) and Dow AgroSciences (NYSE:DOW).
Our current price estimate for DuPont stands at $59, which is about 30% above its current market price.
- DuPont Earnings Preview: Meaningful Improvement In Growth Is Suspect
- DuPont: The Year 2016 In Review
- Key Takeaways From DuPont’s Q3 Earnings
- DuPont Q3 Earnings Preview: No Surprises Expected, Focus To Remain On Merger With Dow
- Dissecting Dow And DuPont Deal, Part 4: Concern Over Concentration
- Dissecting Dow And DuPont Deal, Part 3: Why Merge And Split?
Expanding agriculture product offering to support long-term growth
DuPont is reported to have entered into a research partnership with Israel based biotech company, Evogene. Through this partnership DuPont aims to expand its product offering for soybean crops by targeting soybean rust, a fungal pest that can wipe out 80 percent of affected soybean fields. 
Also DuPont explained several new products that it will be introducing this year in U.S. One of them is Basis Blend, which is an improvement to its existing Basis herbicide, to protect corn crops. DuPont will also introduce Realm Q herbicide, which will helps protect corn against broadleaf weeds and grasses. With Realm Q, farmers will be able to protect their crop against weeds as soon as the crop starts growing instead of having to wait till the crop is more mature, as is the current practice. 
Earlier last month, DuPont reported consistent increase in corn and soybean yield through its seeds business in U.S. 
We believe that DuPont’s focus on constant innovation in genetics and agronomics will help it sustain its growth curve in the long-term and support our outlook for the stock.Notes: