On Wednesday, BofA Securities issued an upgrade for Corteva Inc. (NYSE:), changing its rating from Neutral to Buy and increasing the price target to $67 from $59 previously. The update is based on several positive developments that are expected to benefit the company from 2025 onwards.
The analyst cited a recent survey of agricultural retailers, which indicated higher-than-expected corn seed prices for 2025. The survey also suggested possible continued market share growth for Corteva’s Enlist, with an additional 4 point increase percentages if dicamba brand labels are not renewed. This outcome was considered likely based on feedback from a recent trip through the Cornbelt.
In September, the US Commerce Department recommended imposing duties on imports of 2’4-D, a crucial herbicide for Corteva. This measure is expected to have a positive impact on the company’s competitive position.
Further bolstering the update is greater clarity regarding expected royalties 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 advances in gene editing. This includes the development of a corn product with fungal disease resistance characteristics, which recently received USDA approval as a non-GMO product.
The analyst’s outlook suggests that these factors combined create a favorable environment for Corteva, positioning it for success in the coming years and justifying the price target increase and stock rating upgrade.
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