UPDATE: Loop Capital Upgrades Corteva Inc. (CTVA) to Buy
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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."
Shares of Corteva Inc. closed at $47.50 yesterday.
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