Oppenheimer maintains bullish stance on Corteva following split reports

Oppenheimer maintains the firm’s bullish stance on Corteva (CTVA) following media reports Friday of a potential Seed/CP split. While unconfirmed, the stock closed about 2% higher on the news. Strategically, the firm believes one of Corteva’s leading competitive advantages is its integrated Seed plus CP R&D capabilities enabling blockbusters like the Enlist system. These advantages must be weighed against the crosswinds of a dynamic regulatory backdrop, and clear sum-of-the-parts discount attributable to the Crop Protection business, Oppenheimer adds. Moreover, with the potential for both BASF (BASFY) and Bayer (BAYRY) to spin out their Ag businesses as independent companies, the firm sees a potential split of Corteva altering the calculus for how peers choose to align their own deconsolidation. Oppenheimer has an Outperform rating on Corteva’s shares with a price target of $87.