DuPont Co.'s stock dropped 2% in midday trade Wednesday, enough to make it the biggest percentage loser among Dow Jones Industrial Average components, after J.P. Morgan provided a downbeat assessment of Chemours Co., which DuPont is spinning off. The selloff puts DuPont shares on track to close at the lowest level since Oct. 29. J.P. Morgan analyst Jeffrey Zekauskas initiated coverage of Chemours with an underweight rating, saying he believes it is a "fully-valued security," and that the company will decide to cut its dividend. He expects Chemours cash flow generation to be negligible for 2015, so the company would have to borrow to pay the initial quarterly dividend of $100 million it committed to pay in September. He said he believes, based on what he expects Chemours free cash flow to be in 2016, the chemical company's annual dividend will be close to $100 million, or one-fourth of the current expectation of $400 million. Chemour's stock will begin trading on July 1. The when-issued shares down 4.2% at $17.11, which is 6.9% above Zekauskas price target of $16.
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