UPDATE: Loop Capital Upgrades Corteva Inc. (CTVA) to Buy

April 19, 2021 6:29 AM EDT
Get Alerts CTVA Hot Sheet
Price: $46.32 --0%

Rating Summary:
    14 Buy, 8 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 4 | New: 47
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(Updated - April 19, 2021 7:04 AM EDT)

Loop Capital analyst Christopher Kapsch upgraded Corteva Inc. (NYSE: CTVA) from Hold to Buy with a price target of $54.00.

The analyst comments "We are refreshing our CTVA estimates, updating our valuation framework, increasing our price target (to $54 from $30, to reflect the industry’s fundamental inflection and improving visibility), and raising our rating from Hold to Buy. There are a multitude of positives considerations that underpin our more enthusiastic assessment regarding Corteva’s prospects looking forward, including: a pronounced updraft in global agricultural economic fundamentals (and for domestic cash row crops, in particular); numerous global factors that are likely to continue supporting favorable industry trends (a weaker dollar; strong export demand, from China especially; etc.); a greater than expected adoption trajectory for CTVA’s advanced Enlist trait (and favorable mix that should come with this seed industry ‘transition’); increased visibility in/around materially diminishing net royalty costs, and; prospects for better execution, or at least the likelihood that substantial productivity efforts will begin to show up more noticeably in CTVA’s P&L. All considered, and despite the stock’s strong appreciation since last summer, the fundamental setup seems more than intriguing. As CTVA successfully migrates its portfolio towards “trait independence”, and thereby drives a royalty cost/benefit inversion, we believe there will be upside to both CTVA’s estimates, and the valuation accorded to the stock."

For an analyst ratings summary and ratings history on Corteva Inc. click here. For more ratings news on Corteva Inc. click here.

Shares of Corteva Inc. closed at $47.50 yesterday.


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