The firm also raised their price target on the Wilmington, Del., company's shares to $85 from $84.
DuPont shares at last check were rising 1.3% to $70.05. The shares have traded on Monday up as much as 3.5% at $71.56.
"We believe that the stock has overdriven to the downside, now reflecting myriad risks including raw materials, and the deferred cycle in auto/electronics, the opposite of what happened in December when the stock peaked," analyst C. Stephen Tusa said.
The firm says that DuPont shares have underperformed the sector with a 3% decline versus a sector jump of 17%.
The company has heavy exposure to the auto and electronics industries, both of which have been stunted due to the global semiconductor shortage.
Raw-materials shortages will remain a headwind in the second half of the fiscal year as pricing, which began to turn in the second quarter, is expected to run high at 10% to 15% for the next three quarters.
The firm says that the risk tied to raw materials is reflected in its estimates.
"DD has amongst the most attractive positioning with outgrowth potential and high margins," Tusa said.
"Auto and electrics markets are now more midcycle in profile given deferred growth related to supply constraints, while price/cost is set to be a nice tailwind that is unique to the sector."