Corteva initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Corteva (CTVA) with a Buy rating and $71 price target implying 20% upside. The company is a “high-quality” seed and crop protection business that is intellectual property protected and research and development heavy, so there are “formidable barriers to entry” with EBITDA margins in the low 20s, the analyst tells investors in a research note. The firm believes Corteva’s premium valuation is warranted and that there is room for the multiple to continue to grow as investors favor the defensive names.