Analyst Joel Jackson from BMO Capital maintained a Buy rating on Corteva and keeping the price target at $86.00.
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Joel Jackson has given his Buy rating due to a combination of factors that highlight Corteva’s strong market position and growth potential. Corteva is recognized as a leading global supplier in both seeds and crop protection chemicals, with a balanced earnings mix between these two segments. The company has demonstrated strong performance in the crop inputs sector, surpassing previous highs and showing potential for continued growth with a low-double-digit EBITDA compound annual growth rate.
Despite discussions about a potential split of its crop chemicals and seeds businesses, Jackson remains unconvinced that such a move would enhance value. Corteva’s current trading multiples are comparable to industry standards, and there is skepticism about the justification for higher valuations in a break-up scenario. Additionally, there are concerns about regulatory challenges and potential legal liabilities that could arise from such a split. Overall, Jackson sees strong value in Corteva as a compounder, supporting his Buy rating with a target price of $86.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $84.00 price target.