Summary

• Corteva, Inc. is rated hold due to valuation concerns ahead of its planned separation into Vylor (Seed) and New Corteva (Crop Protection).
• DCF analysis implies a share price of $51.95, significantly below the current market price, while SOTP multiples suggest higher value, primarily from Vylor's premium profile.
• Seed/Vylor is higher-margin and more defensible, while Crop Protection/New Corteva faces cyclical and competitive pressures, impacting future standalone multiples.
• Key risks include execution of the separation, realization of valuation premiums, and segment-specific challenges such as Vylor's market share and New Corteva's pricing pressure.

Investment Thesis

I rate Corteva, Inc. (CTVA) a Hold.

I see Corteva as an interesting equity story focused on a pre-separation dynamic, as, today, the share represents a double claim on two future standalone businesses: Vylor for

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