Goldman Sachs lowers Corteva stock price target to $20 post-spinoff

Goldman Sachs has lowered its stock price target for Corteva Inc. (NYSE:CTVA) to $20.00 following the company's recent spinoff of its seed business, Vylor (VYLR). Corteva's stock is currently trading at $14.45, marking a 15% gain over the past week. The firm maintains a Buy rating for Corteva, valuing it at 10.5x EV/EBITDA, which is lower than Syngenta's average forward EV/EBITDA multiple of 10.7x between 2004 and 2017.

Corteva's current valuation stands at 9.2x EV/EBITDA, with a P/E ratio of 7.52 and a 5% dividend yield. Analysts anticipate the company to generate $600 million in free cash flow annually from 2027 to 2029, representing a free cash flow yield greater than 6%. The company's net cash position will be maintained in Q4, although net debt is expected to emerge due to seasonal factors.

Goldman Sachs accounts for $1.75 billion in enterprise value calculations for predecessor liabilities, including PFAS and underfunded pension obligations. The proposed $20 target implies approximately a 38% upside from the current stock price.