On Thursday, Mizuho Securities updated its outlook on shares of Corteva Inc. (NYSE:CTVA), increasing the price target to $61 from the previous $56 while sustaining a Buy rating on the stock. The firm's decision follows Corteva's reiterated guidance for its 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) at a midpoint of $3.6 billion.
Corteva reported an adjusted earnings per share (EPS) of $0.89, which compares to expectations of $1.00 and $0.86 from Morgan Stanley USA estimate and Bloomberg consensus, respectively.
The company's first-quarter 2024 adjusted EBITDA was $1.03 billion, against the $1.19 billion and $1.02 billion projected by Morgan Stanley USA estimate and consensus. This represents a 16% year-over-year decline in EBITDA on a 6% decrease in organic sales.
Looking ahead, the company's EBITDA guidance for 2024 is projected to increase by 6% on a 2% rise in sales. This growth is anticipated to be driven by robust seed sales and the introduction of new pesticide products, which are expected to compensate for any destocking in pesticides. Moreover, Corteva is predicted to benefit from favorable seed pricing in 2024, which should more than make up for less favorable pesticide pricing.
Corteva is also scheduled to participate in an upcoming bus tour from May 13 to May 14, which will include other companies such as DuPont (NYSE:DD), Air Products and Chemicals (NYSE:APD), Ashland Global Holdings (ASH), Altus Midstream Company (NYSE:KNTK) (ALTM), and Armstrong World Industries (AWI).
Mizuho has made no material changes to its 2024 and 2025 EBITDA estimates for Corteva. The firm reiterates its Buy rating and emphasizes the increased price target, reflecting confidence in the company's financial performance and market position.
InvestingPro Insights
As Mizuho Securities raises its outlook on Corteva Inc. (NYSE:CTVA), investors may find additional context through real-time data and InvestingPro Tips. The company's management has demonstrated confidence in its financial health by aggressively buying back shares and consistently raising its dividend for the past five years, which aligns with Mizuho's optimistic assessment.
InvestingPro Data shows that Corteva has a market capitalization of $37.67 billion and trades at an adjusted price-to-earnings (P/E) ratio of 29.21 as of the last twelve months ending Q1 2024. Despite a slight revenue decline of 5.1% over the same period, the company maintains a healthy gross profit margin of 42.47%. Moreover, Corteva's dividend yield stands at 1.19%, with a recent dividend growth of 6.67%.
For investors looking for further insights, there are additional InvestingPro Tips available, including the expectation of net income growth this year and several analysts revising their earnings upwards for the upcoming period. These insights could be crucial for investors considering the company's prospects and align with the positive outlook provided by Mizuho Securities.
Interested readers can find more tips and a deeper analysis on InvestingPro's platform, and use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 9 more InvestingPro Tips available for Corteva, offering a comprehensive view of the company's performance and potential.
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