Indianapolis, Indiana-based Corteva, Inc. (CTVA) provides seed and crop protection solutions for the agriculture industry and food supply. Valued at $35.9 billion by market cap, the leading agricultural company offers seeds and crop protection products, as well as software solutions and digital services.
Shares of this agricultural chemical and seed major have underperformed the broader market considerably over the past year. CTVA has declined 3.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.6%. Despite rallying 7.6% in 2024, CTVA trails behind SPX’s 12% rise on a YTD basis.
Narrowing the focus, CTVA has surpassed the Global X AgTech & Food Innovation ETF (KROP). The exchange-traded fund has dropped about 18.2% over the past year.
On Jul. 31, CTVA shares closed up more than 1% after reporting its Q2 earnings results. Its adjusted EPS of $1.83 exceeded Wall Street's expectations of $1.74. Corteva’s revenue was $6.11 billion, beating forecasts of $6.10 billion. Driven by solid demand, CTVA updated its full-year guidance and expects operating EPS to be between $2.60 and $2.80 and expects revenue to be between $17.2 billion and $17.5 billion, a growth of 1% at the mid-point.
For the current fiscal year, ending in December, analysts expect Corteva’s EPS to grow 1.1% to $2.72 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering CTVA stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
This configuration is less bullish than a month ago, with 14 analysts suggesting a “Strong Buy.”
On Aug. 7, Morgan Stanley (MS) analyst Vincent Andrews maintained a “Buy” rating on CTVA with a price target of $65, implying a potential upside of 26.1% from current levels.
The mean price target of $62.67 represents a 21.5% premium to CTVA’s current price levels. The Street-high price target of $69 suggests an ambitious upside potential of 33.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
