Corteva price target lowered to $62 from $64 at RBC Capital

RBC Capital lowered the firm’s price target on Corteva to $62 from $64 but keeps an Outperform rating on the shares as part of a broader research note on Ag Chemicals following USDA’s June WASDE report. Ag fundamentals are at a turning point as WASDE projects farmer income to be down about 25% in 2024/25 vs 2023/24, and corn prices to be down about 9% y/y to $4.40/bu as it forecasts stocks-to-use to be up to 14.2% vs 13.7% in 2023/24, the analyst tells investors in a research note. Despite this inflection point however, RBC also sees Ag fundamentals as “more stable”, adding that volumes could inflect higher with destocking waning through the second half of 2024.