Wolfe Research cautious on optimism in macro Ag

Investing.com -- Wolfe Research lifted its price target on Corteva (NYSE: CTVA) to $89 from $86 while maintaining an Outperform rating, citing the company's market share gains and cost execution advantages over competitors.

The firm adjusted its earnings estimates for Corteva to $3.70 per share for 2026 and $4.20 for 2027, up from previous forecasts of $3.65 and $4.15, respectively. The revision reflects expectations of reduced pricing headwinds in crop protection chemicals during the second half of the year.

Wolfe Research described Corteva as maintaining "best in class" status in the agricultural chemicals sector, with recent profit-taking by investors potentially reducing setup risk. The firm said new seed products should provide additional support for market share gains.

For FMC (NYSE: FMC), Wolfe Research raised its earnings estimates to $1.80 per share for 2026 and $2.40 for 2027, from $1.75 and $2.35, while keeping a Peer Perform rating. The adjustment accounts for slightly less generic pricing competition in the second half as costs rise.

The research firm expressed cautious optimism on the agricultural macro environment, pointing to emerging biofuel mandates in the United States, Brazil and India as modest offsets to input inflation. Wolfe noted that crop protection chemical input costs are rising faster for global competitors compared to US-based companies.

The firm flagged concerns about second-half credit dynamics in Brazil despite stabilizing demand trends and supportive government programs.

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