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BofA maintains positive stance on Corteva stock, anticipating continued success driven by recent tailwinds

EditorAhmed Abdulazez Abdulkadir
Published 2024/10/16, 14:12
CTVA
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On Wednesday, BofA Securities issued an upgrade for Corteva Inc. (NYSE:CTVA), shifting its rating from Neutral to Buy and increasing the price target to $67 from the previous $59. The upgrade is based on several positive developments that are expected to benefit the company in 2025 and onwards.

The analyst cited a recent Ag Retailer Survey, which indicated stronger-than-anticipated corn seed pricing for 2025. The survey also suggested potential continued market share growth for Corteva's Enlist, with an additional 4 percentage point increase if branded dicamba labels are not renewed. This outcome was deemed likely based on feedback from a recent trip across the Cornbelt.

In September, the U.S. Department of Commerce recommended imposing duties on imports of 2'4-D, a crucial herbicide for Corteva. This move is anticipated to positively impact the company's competitive position.

Further bolstering the upgrade is the increased clarity regarding royalties expected in 2025 and a reduction in costs exceeding $400 million. The analyst expressed optimism about Corteva's long-term prospects, particularly highlighting the company's advancements in gene editing. This includes the development of a corn product with fungal disease-resistant traits, which has recently received approval from the USDA as a non-GMO product.

The analyst's outlook suggests that these combined factors create a favorable environment for Corteva, positioning it for success in the coming years and justifying the raised price target and improved stock rating.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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