Corteva's Stock Now Has Better Setup Into Upcoming Investor Days, Spin off, Following Earnings, UBS Says

MT Newswires Live
Aug 19

Corteva's (CTVA) stock now has a better setup into the upcoming investor days on Sept. 15 and the spin off on Oct. 1, following a downward reset from the company's shares Q2 earnings, UBS said in a research note.

UBS said on Monday it believes that the framing of EBITDA growth drivers through 2029 will be the main focus of the investors days. For the spin off company, Vylor, UBS sees meaningful growth drivers beyond 2029, while for New Corteva, UBS expects more focus on the crop chemicals pipeline, biologicals growth, and likely a new cost savings program, according to the note.

UBS further estimates a 2029 framework of $3.3 billion to $3.8 billion in EBITDA for Vylor, reflecting an approximate $750 million of EBITDA growth at the mid-point and a range of 6% to 11% compounded annual growth rate.

For New Corteva, UBS estimates 2029 framework of $1.5 billion to $1.7 billion in EBITDA, reflecting about $200 million of EBITDA growth at the mid-point and a range of 2% to 7% compounded annual growth rate.

UBS lowered its price target to $85 from $89 and maintained its neutral rating on the company's stock.

Price: 78.98, Change: +1.07, Percent Change: +1.37

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