RBC Capital cuts Corteva stock price target to $17 on spin-off

RBC Capital has reduced its price target for Corteva Inc. stock to $17.00 following the company's planned spin-off of its seed business into a new entity called Vylor. The brokerage firm has maintained an Outperform rating for the stock, citing more than 20% upside potential and an attractive valuation. RBC Capital's new price target is based on 9 times fiscal 2027 EBITDA, and it views Corteva's growth outlook for the next three years as above peer in terms of low single-digit percentage sales and mid single-digit percentage EBITDA compound annual growth rate.

The analyst firm highlights Corteva's stable margins, low-cost Integrated Operations Model, and low leverage as factors contributing to its valuation. The stock is currently trading at $13.91, presenting an approximately 22% upside according to InvestingPro data. Corteva's dividend yield of 5.18% also adds an income component to the investment thesis.