Corteva (CTVA) is well-positioned for strong long-term growth, driven by a combination of cost savings, royalty reductions, and innovations in new products, particularly in crop protection chemicals and biologics, UBS Securities said in a note.
The company is expected to achieve approximately $1 billion in earnings before interest, taxes, depreciation, and amortization growth by 2027, with emerging opportunities in gene editing, biofuels, and hybrid wheat further fueling growth.
UBS said gene editing stands out as a major focus, leveraging Corteva's leading germplasm to enhance disease resistance, and improve yield performance, ultimately accelerating yield growth.
The biofuels segment is also expected to benefit from rising demand for renewable diesel and sustainable aviation fuel, driving increased crop input needs. Additionally, hybrid wheat represents another promising $1 billion market opportunity in the years ahead, according to the note.
Despite these promising prospects, UBS believes the current stock price does not fully reflect Corteva's growth potential, making it a compelling long-term investment.
"And we don't think that EBITDA growth ends in 2027," the firm said.
UBS has a buy rating on Corteva's stock with a $71 price target.
Price: 58.54, Change: +0.29, Percent Change: +0.51
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