Valued at a market cap of $46.3 billion, Corteva, Inc. (CTVA) is an agricultural chemical company that develops and supplies germplasm and traits in corn, soybean, and sunflower seed markets. The Indianapolis, Indiana-based company also supplies products to the agricultural input industry, which protect against weeds, insects, and other pests and diseases. 

Shares of this agricultural inputs company have outpaced the broader market over the past 52 weeks. Corteva has rallied 18.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, on a YTD basis, the stock is up 19.3%, compared to SPX’s marginal drop. 

Zooming in further, CTVA has also outperformed the First Trust Indxx Global Agriculture ETF’s (FTAG) marginal rise over the past 52 weeks and 10.9% uptick on a YTD basis. 

On May 7, CTVA delivered its Q1 earnings results. Despite reporting a mixed performance, shares of the company surged 7% in the following trading session. Its revenue of $4.4 billion declined 1.7% from the year-ago quarter and fell short of the consensus estimates by 2%. Lower net sales across both of its reportable segments impacted the top line. However, on the upside, CTVA experienced positive organic revenue growth in both segments, with gains observed across most regions. Adding to the uptick, the company’s emphasis on cost discipline and operational efficiency led to a reduction in its net costs, which helped drive a 15% year-over-year increase in its adjusted EBITDA to $1.2 billion. Additionally, its operating earnings improved 27% year-over-year to $1.13 per share and topped the forecasted figure by a notable margin of 29.9%. 

Looking ahead to fiscal 2025, Corteva reaffirmed its outlook, guiding for net sales between $17.2 billion and $17.6 billion, and projecting operating EPS in the range of $2.70 to $2.95.

For the current fiscal year, ending in December, analysts expect Corteva’s EPS to grow almost 16% year over year to $2.98 The company’s earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters, while missing on two other occasions. 

Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 14 “Strong Buy,” two “Moderate Buy,” and five “Hold” ratings. 

The configuration is more bullish than two months ago, with an overall “Moderate Buy” rating, consisting of 12 analysts suggesting a “Strong Buy.” 

On May 12, Wells Fargo & Company (WFC) maintained an “Overweight” rating on CTVA and raised its price target to $79, which indicates a 16.2% potential upside from the current levels. 

The mean price target of $70.35 represents a 3.5% premium from Corteva’s current price levels, while the Street-high price target of $80 suggests an upside potential of 17.7%.