Corteva’s Investor Day Preview
RBC Capital analysts provided their views on Corteva, Inc. (NYSE:CTVA) ahead of the company’s Investor Day on September 13.
The analysts expect management to provide further details regarding the recent completion of its Strategic Review, new product pipelines and royalty reduction, H2 LATAM season and outlook for the full 2023-year given robust ag fundamentals, and an updated capital return strategy.
The analysts believe, Ag fundamentals should support continued growth despite recent commodity price volatility, driven by the Russia/Ukraine, FX headwinds, European energy cost and continued inflationary cost pressures.
Furthermore, the analysts believe the upcoming LATAM's growing season in H2 should be a positive tailwind for crop protection, partially offset by FX headwinds.
In addition, the analysts think the stock will be further supported by a robust capital return strategy (over $3 billion since 2019).
| Symbol | Price | %chg |
|---|---|---|
| SAMF.JK | 320 | 1.25 |
| BISI.JK | 920 | -1.09 |
| PHOR.ME | 6937 | 0.63 |
| COROMANDEL.BO | 2220.5 | -0.5 |
RBC Lifts Corteva Price Target, Keeps Outperform Rating
RBC Capital raised its price target on Corteva (NYSE:CTVA) to $85 from $74, reaffirming an Outperform rating as confidence grows in the company’s long-term earnings trajectory and strategic execution.
The updated forecast reflects modest upward revisions to EBITDA estimates for fiscal 2025 and 2026, with projections now at $3.78 billion and $4.1 billion, respectively. This comes on the heels of a solid first-quarter performance that supports the credibility of Corteva’s 2025 guidance and 2027 strategic targets.
RBC highlights several tailwinds that could drive further upside. These include a recovery in Brazilian seed plantings, reduced currency headwinds, and potential share gains from farmers switching away from Dicamba herbicides. The firm also points to improving margins from cost discipline, operational efficiencies, and lower royalty payments, which collectively enhance the earnings outlook.
Valuation has been adjusted to reflect 2026 EBITDA at 14 times, up from the previous basis of 2025. Additionally, Corteva’s $1 billion share repurchase plan set for 2025 adds to the bullish case, reinforcing shareholder returns as part of the company’s capital allocation strategy. Overall, RBC sees Corteva as well-positioned to outperform as it benefits from both internal execution and favorable industry dynamics.
Corteva’s Investor Day Preview
RBC Capital analysts provided their views on Corteva, Inc. (NYSE:CTVA) ahead of the company’s Investor Day on September 13.
The analysts expect management to provide further details regarding the recent completion of its Strategic Review, new product pipelines and royalty reduction, H2 LATAM season and outlook for the full 2023-year given robust ag fundamentals, and an updated capital return strategy.
The analysts believe, Ag fundamentals should support continued growth despite recent commodity price volatility, driven by the Russia/Ukraine, FX headwinds, European energy cost and continued inflationary cost pressures.
Furthermore, the analysts believe the upcoming LATAM's growing season in H2 should be a positive tailwind for crop protection, partially offset by FX headwinds.
In addition, the analysts think the stock will be further supported by a robust capital return strategy (over $3 billion since 2019).
