Corteva break-up may not be value-enhancing, says BMO Capital

Corteva (CTVA) is considering splitting up its seed and pesticide units, but BMO Capital is not convinced that a break-up would be value-enhancing, the analyst tells investors in a research note. The firm, which has an Outperform rating and $86 price target on the shares, says that sum-of-the-parts support for a break-up isn’t clear, and notes that the U.S. may not allow foreign companies to acquire domestic IP, and questions how the PFAS liability would split between CP and seeds standalones.