Mizuho raises Corteva stock price target to $71 from $67

On Thursday, Mizuho (NYSE:MFG) analysts increased the price target for Corteva Inc. (NYSE:CTVA) shares to $71.00, up from the previous target of $67.00, while maintaining an Outperform rating. The stock, currently trading near its 52-week high of $66.24, has shown impressive momentum with a 25.4% return over the past six months. According to InvestingPro analysis, Corteva appears to be trading above its Fair Value, with analyst targets ranging from $57 to $74. The adjustment follows Corteva’s recent financial performance and market conditions, including foreign exchange headwinds that have become more pronounced than earlier predictions.

Corteva reported its fourth-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) at $525 million, which aligns closely with market expectations and falls within the company’s guided range. The company’s last twelve months EBITDA stands at $3.014 billion, with InvestingPro data showing a GOOD overall financial health score. This figure compares to a consensus of $522 million and a slightly higher estimate of $556 million by MSUSA. The earnings were bolstered by a $20 million increase in crop protection, counterbalanced by a $57 million decrease in Seeds, attributed to the seasonal timing of sales.

The adjusted earnings per share (EPS) for Corteva came in at $0.32, surpassing both the MSUSA estimate of $0.30 and the Bloomberg consensus of $0.31. This performance also exceeded the company’s guided range of $0.24 to $0.37. The analysts at Mizuho noted that the midpoint of Corteva’s guidance has decreased by $100 million from the prior outlook, primarily due to greater foreign exchange headwinds, which have increased from $150 million to $275 million.

Despite these challenges, the analysts remain optimistic about Corteva’s prospects. They cited volume growth, higher pricing, and lower costs as contributing factors to a projected $600 million year-over-year increase in EBITDA by 2025 before considering foreign exchange impacts. The strength of the U.S. dollar has been a significant factor, but the lowered guidance was not unexpected. For deeper insights into Corteva’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which cover over 1,400 US equities.

Mizuho’s analysts believe that Corteva remains the best-positioned company in the agricultural sector, thanks to its resilient Seed portfolio. They have expressed confidence in the company’s ability to navigate the current market conditions and have thus raised their price target while reiterating an Outperform rating on the stock.

In other recent news, EIDP Inc. announced a significant restatement of its financial statements due to a cash flow misclassification. The error, originating from the fourth quarter of 2023, was discovered during a review of the company’s fourth-quarter 2024 financial results. The restatement will correct cash outflows from loan activities, improving the "Cash provided by (used for) operating activities—continuing operations" by approximately $400 million for the year ended December 31, 2023, with varying amounts for each subsequent quarter in 2024.

In another development, Corteva Inc. reported fourth-quarter results in line with expectations, posting an adjusted earnings per share of $0.32 and revenue of $4 billion. However, the company’s 2025 earnings per share guidance of $2.70 to $2.95 fell short of the $3.19 consensus estimate.

These are recent developments for both companies. It is important to note that EIDP’s misclassification was specific to its standalone financial statements and did not affect the consolidated financial statements of Corteva. Meanwhile, despite in-line Q4 results, Corteva’s shares fell due to weaker-than-expected guidance for 2025.

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