Analysts are Revising Ratings for These 5 Commodity Stocks

4. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 39

Corteva, Inc. (NYSE:CTVA) received an upgrade from JPMorgan on Monday, August 8, 2022. The research firm increased its ratings for the agricultural chemical company from “Neutral” to “Overweight,” citing multiple tailwinds for the stock.

JPMorgan analyst Jeffrey Zekauskas thinks that Corteva, Inc. (NYSE:CTVA) could raise the prices of its seed products next year given the strength of corn and soy rates.

The upgrade came a few days after Corteva, Inc. (NYSE:CTVA) lifted its sales outlook for 2022. The company now expects to generate revenue in the range of $17.2 – $17.5 billion for the full year, compared to its earlier projection of $16.7 – $17 billion.

Separately, Corteva, Inc. (NYSE:CTVA) also appeared in the first-quarter 2022 investor letter of investment management firm Aristotle Capital Management. The letter stated:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”