Joel Jackson, an analyst from BMO Capital, maintained the Buy rating on Corteva. The associated price target remains the same with $86.00.
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Joel Jackson has given his Buy rating due to a combination of factors surrounding Corteva’s strategic plans and financial outlook. The company is planning to split into two distinct entities, focusing on crop protection chemicals and seeds, which is expected to unlock value for shareholders in the long term. Although there are some uncertainties regarding the necessity of the split, management’s confidence in the move suggests potential for growth and efficiency in both segments.
Additionally, the seeds spin-off is anticipated to be tax-free, and the company has outlined a clear division of EBITDA between the two new entities. Management’s focus on cost reductions and supply chain optimization in crop protection, alongside the innovation and growth trajectory in seeds, supports the Buy rating. The projected EBITDA for 2026 aligns with market expectations, and the valuation multiples suggest a favorable outlook for investors, despite some concerns about liabilities in the crop protection segment.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a $70.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTVA in relation to earlier this year.