UBS raises Corteva stock price target to $90 on valuation view

UBS has increased its price target for Corteva Inc. to $90 per share, up from $85. The firm maintains a Neutral rating on the shares, which are currently trading at $82.44, marking a 25% increase year-to-date. However, UBS anticipates Corteva's stock may be overvalued, positioning it among the most overvalued companies. The financial framing for Vylor and New Corteva aligns with their previous analysis.

UBS sees Vylor as a compelling growth opportunity but expects more growth in 2029 and beyond, potentially delaying a re-rating. The firm estimates Vylor's valuation at 15x to 16x EBITDA, while New Corteva trades at 7x to 8x. Corteva's P/E ratio stands at 51.24, viewed as high by InvestingPro. The company will revisit its view if a clear dislocation in value arises after the Vylor spin-off, set for October 1, 2026.

Additionally, Corteva recently settled a $455 million claim related to PFAS discharges, with Corteva contributing about $66 million, and is preparing for the spinoff of its seed business. Analysts at RBC Capital have reiterated an Outperform rating with a price target of $103, while BMO Capital lowered its target to $95, citing the spinoff's impact.