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Corteva Inc (NYSE:CTVA): A Bullish Investment Perspective

We came across a long thesis on Corteva Inc (NYSE:CTVA) on ValueInvestorsClub by Glory_Warriors. In this article we will summarize the bulls’ thesis on CTVA. The company’s shares were trading at $60.92 when this thesis was published, vs. closing price of $59.63 on Jan 13th.

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Corteva Inc (NYSE:CTVA), a pure-play agricultural inputs company spun off from DowDuPont in 2019, is a global leader in developing innovative seed and crop protection products. While its operations span worldwide, with North America accounting for approximately half of its revenue, the majority of its profits are driven by its seed business, complemented by contributions from crop protection products.

The bull thesis is primarily driven by the argument that Corteva Inc (NYSE:CTVA) will gain share and expand margins as it rolls out its Enlist Soybean technology package and boosts its presence in the retail channel. The author believes that through the abovementioned new product, which is superior in terms of resistance, CTVA is taking share from Bayer, the once dominant leader – he argues that CTVA can expand into new regions like Brazil and Argentina, boost its presence in the US and generate new streams of licensing revenues with other US producers, which will result in more than $200 million incremental EBITDA through 2027. Another important driver of the bull thesis is that CTVA will benefit from falling crop prices which will lead to COGS deflation and a substantial boost to margins – the author claims that corn and soybean prices are down more than 30% vs. 2021-2022 and will further decrease in 2025-2026 as crop hedges roll off.

All in all, the author estimates that Corteva Inc (NYSE:CTVA) will generate superior, out of consensus revenue growth until 2026, which coupled with a 5-percentage point expansion in the Gross Margin will put the company’s 2026 EPS at $5.00. A target P/E multiple of 20.0x is assigned, leading to a $100.00 target stock price by YE2026. Discounted back, the target stock price stands at $83.00, or 39% upside from the current market price.

While we acknowledge the potential of CTVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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