Corteva (CTVA.N): Confidence in Crop Protection New Products Pipeline Despite Continued Pricing Pressure

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Corteva (CTVA.N): Confidence in Crop Protection New Products Pipeline Despite Continued Pricing Pressure

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31 Jul 2026 16:00:00 ET │ 13 pages

Corteva (CTVA.N)

Confidence in Crop Protection New Products Pipeline Despite

Continued Pricing Pressure

CITI'S TAKE Neutral

Price (31 Jul 26 13:04) US$79.43 Our takeaways from the call: 1) Despite ongoing pricing pressure from a

Target price US$86.00↑ competitive market and El Niño-related weakness in fungicide demand,

CTVA reaffirmed its view that the Crop Protection market will grow +LSD from US$85.00

this year. The CP new product portfolio delivered +HSD volume growth in Expected share price return 8.3%

1H, with pricing roughly flat. Management remains encouraged by its Expected dividend yield 0.9%

pipeline of seven new Crop Protection actives expected to launch over the Expected total return 9.2%

next decade. 2) Management reiterated confidence in its ~$4.4 billion Market Cap US$53,124M

2027 EBITDA target and noted that the net royalty benefit could be

potential upside with an accelerated timeline. At its September Investor

Days, CTVA will introduce 2029 financial targets and provide a deeper

look at the strategy and innovation pipelines for both Vylor and New Patrick CunninghamAC

Corteva. 3) CTVA highlighted a strong competitive position in Brazil +1-212-816-6684

orderbooks but continues to see farmer margins pressured by tight credit patrick.cunningham@citi.com

conditions and elevated fuel & fertilizer costs. Rachel Lee

+1-212-816-4559

Stock Action — Our FY26E EBITDA moves higher by <1% as a softer top-line rachel.lee@citi.com

estimate across both businesses driven by higher CP pricing pressure, El Niño- Alexander Yi

related volume risks, and updated FX assumptions is more than offset by continued