Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 21 Oct, 25 | CTVA | Buy | USD 62.15 | USD 65.0 | USD 68.2 | 20 days | Closed |
5.49%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.
Strong Operating EBITDA Expansion: Operating EBITDA increased 13%, rising from USD 1.91 billion in Q2FY24 to USD 2.16 billion in Q2FY25, with margin improvement of approximately 215 basis points, reflecting better product mix and cost optimization
Significant Earnings Growth: GAAP income from continuing operations rose 31% year-over-year from USD 1.06 billion in Q2FY24 to USD 1.38 billion in Q2FY25, driven by improved pricing, higher seed demand, and cost efficiencies
Currency Headwinds Impacting Seed Segment: Seed segment performance was affected by a 1% unfavorable currency impact, primarily from the Canadian Dollar, slightly dampening overall regional revenue growth
Price Pressure in Crop Protection: Crop Protection segment pricing declined 2% year-over-year due to competitive dynamics in Latin America, partially offsetting the benefits of volume growth
Corteva faces the risk of margin compression and earnings volatility due to persistent pricing pressure and currency fluctuations in key Latin American markets, which could offset operational gains and volume growth momentum
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 62.15 | 55.7 | 65.0 | 68.2 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Operational and Market Leadership in First Half 2025: Corteva, Inc. (NYSE: CTVA) delivered a robust performance in the first half of 2025, underscoring its leading position in North America’s corn and soybean markets and its operational efficiency. The Company reported a 3% increase in net sales to USD 10.87 billion and a 5% growth in organic sales, supported by volume and pricing gains across regions. GAAP income from continuing operations stood at USD 2.05 billion, up 43% year-over-year, while GAAP EPS rose 47% to USD 2.98. Non-GAAP Operating EBITDA reached USD 3.35 billion, representing a 14% increase, and Operating EPS rose 22% to USD 3.33. The results reflect the Company’s disciplined execution, product innovation, and margin enhancement initiatives.
Second Quarter 2025: Sustained Growth and Margin Expansion: For the second quarter ended June 30, 2025, Corteva reported net sales of USD 6.46 billion, a 6% increase from the prior-year period. Organic sales rose 7%, driven by a 6% increase in volume and a 1% improvement in pricing. GAAP income from continuing operations increased 31% year-over-year to USD 1.38 billion, translating to GAAP EPS of USD 2.02, while Operating EBITDA surged 13% to USD 2.16 billion. This performance reflects approximately 215 basis points of EBITDA margin improvement, underpinned by strong Seed demand and improved operational efficiencies across key markets.
Seed Segment: Growth Driven by North American Corn Demand: The Seed segment continued to strengthen Corteva’s market position, with net sales rising 5% year-over-year to USD 4.54 billion in Q2 2025. Volume increased 3%, and pricing rose 3%, partially offset by a 1% currency headwind. Growth was largely supported by expanded corn acreage and share gains in North America, offset by lower soybean area and delayed purchases in Argentina. Segment Operating EBITDA reached USD 1.86 billion, up 10% year-over-year, driven by favorable pricing, product mix, and reduced royalty expenses. Consequently, the Seed segment’s EBITDA margin improved by approximately 185 basis points compared to the previous year, demonstrating the success of its “price-for-value” strategy.
Crop Protection Segment: Strong Volume Gains and Cost Efficiency: Corteva’s Crop Protection segment also recorded strong performance, with Q2 2025 net sales of USD 1.92 billion, reflecting an 8% increase versus the prior year. Volume rose 11%, driven by demand for new products, fungicides, spinosyns, and biologicals, while pricing declined 2% due to competitive pressure in Latin America. Segment Operating EBITDA rose sharply by 31% to USD 334 million, reflecting productivity savings, raw material deflation, and improved cost management. EBITDA margin improved by approximately 310 basis points year-over-year, signaling effective execution despite regional pricing challenges and currency headwinds.
Regional Performance: Broad-Based Growth with Latin America Recovery Expected: Regionally, North America remained the growth engine, delivering a 5% sales increase to USD 4.63 billion in Q2 2025, while EMEA rose 11%, and Asia Pacific grew 5%. Latin America posted modest top-line growth of 3%, primarily due to pricing pressure and currency weakness, though organic sales grew 11% on robust demand for Crop Protection products. The first-half performance demonstrated resilience across all regions, with Latin America expected to strengthen in the second half due to favorable crop cycles and pricing normalization.
Upgraded FY2025 Guidance and Capital Returns: Reflecting strong first-half results and confidence in its business momentum, Corteva raised its full-year 2025 outlook. The Company now expects net sales between USD 17.6 billion and USD 17.8 billion, representing ~5% year-over-year growth at the midpoint. Operating EBITDA is projected at USD 3.75–3.85 billion (13% growth at the midpoint), and Operating EPS is forecasted in the range of USD 3.00–3.20 per share (21% growth at the midpoint). Corteva also reaffirmed its strong capital allocation strategy with an anticipated USD 1 billion share repurchase and an increase in its dividend, reflecting robust cash flows and balance sheet strength.
Market Outlook: Demand Stability Amid Pricing Pressure: Global agricultural fundamentals remain strong, with farmers prioritizing high-yield seed and protection technologies amid record global grain demand. North America corn acreage increased 5% year-over-year, supported by favorable economics. However, competitive pricing in Latin America and macro uncertainties are expected to weigh on second-half performance. Despite these headwinds, Corteva anticipates modest volume growth and a stable full-year market environment, reinforcing its ability to meet the 2027 financial framework targets through disciplined cost management and innovation-driven growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Corteva, Inc. (NYSE: CTVA) at the current market price of USD 62.15, as on Oct 21, 2025 at 8:15 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Agricultural Inputs
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CTVA Corteva Inc |
1.77 2.42% | 74.97 | 30.23 | 15.58 | 1.89 | 1.30 | 2.10 | 13.87 |
| NTR Nutrien Ltd |
1.58 2.30% | 70.27 | 54.62 | 15.27 | 1.14 | 1.17 | 1.64 | 10.45 |
| CF CF Industries Holdings Inc |
2.63 2.93% | 92.47 | 14.08 | 13.59 | 2.58 | 2.96 | 2.80 | 5.90 |
| MOS The Mosaic Company |
1.09 4.02% | 28.36 | 9.17 | 11.07 | 0.78 | 0.98 | 1.00 | 5.38 |
| YARIY Yara International ASA |
0.30 1.32% | 23.10 | 16.03 | 10.56 | 0.52 | 1.25 | 0.71 | 5.89 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 21, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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