UBS maintains Buy rating on Corteva with $73 target

Friday, UBS analyst Joshua Spector maintained a Buy rating on Corteva Inc. (NYSE: NYSE:CTVA), with a steady price target of $73.00. The agricultural science company, currently valued at $42 billion, aims to achieve approximately $1 billion in EBITDA growth by 2027, building upon its current EBITDA of $3.2 billion. According to InvestingPro data, while trading slightly above its Fair Value, Corteva maintains a "GOOD" overall financial health score and analysts project continued profitability this year.

Corteva’s leadership, including the CEO and Investor Relations, conveyed to UBS that they foresee minimal direct impact from tariffs and trade uncertainties, estimating that only about 2% of their cost of goods sold are affected by imports from China into the U.S. The company’s resilience is reflected in its moderate debt levels and strong dividend growth, having raised dividends for six consecutive years. InvestingPro subscribers can access detailed analysis of Corteva’s financial stability through comprehensive Pro Research Reports, available for over 1,400 US stocks.

Looking ahead to 2025, Corteva expects certain factors to be more favorable than previously planned. These include U.S. corn acreage planting intentions and a foreign exchange environment that is not as adverse as it was a few months prior. The company has secured U.S. seed pricing, which is expected to support low single-digit percentage price growth year over year. Additionally, crop chemical inventories are reported to be within normal ranges.

Despite heightened uncertainty due to trade and tariff risks, UBS does not foresee any material near-term disruptions. The firm’s EBITDA estimates for Corteva in 2025 and 2026 are slightly above the mid-point of the company’s guidance, with a projected increase of 1% and 5%, respectively, compared to consensus.

In other recent news, Corteva Inc. reported its fourth-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) at $525 million, aligning closely with market expectations. The adjusted earnings per share (EPS) came in at $0.32, surpassing the Bloomberg consensus of $0.31. Meanwhile, BofA Securities raised Corteva’s stock price target to $73, maintaining a Buy rating due to a solid outlook for 2025. Similarly, Mizuho (NYSE:MFG) increased its price target to $71, citing volume growth and lower costs as positive factors for future EBITDA growth. Goldman Sachs also initiated coverage with a Buy rating, setting a price target of $71, reflecting confidence in Corteva’s growth potential and margin expansion.

In a separate development, Corteva announced the resignation of board member Dr. Rebecca Liebert, effective February 28, 2025. The company clarified that her departure was not due to disagreements with management or the board. Additionally, EIDP Inc., a subsidiary of Corteva, disclosed a restatement of its financial statements due to a cash flow misclassification, which did not impact Corteva’s consolidated financials. These developments indicate Corteva’s ongoing efforts to navigate market conditions and maintain its strategic initiatives.

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