Activist pressure a plus for Corteva

Article Excerpt

CORTEVA INC. $46 is a buy. The company (New York symbol CTVA; Manufacturing sector; Shares outstanding: 728.9 million; Market cap: $33.5 billion; Dividend yield: 1.2%; Takeover Target Rating: Medium; www.corteva.com) is a leading maker of seeds and crop-protection chemicals. On June 1, 2019, DuPont de Nemours Inc. (New York symbol DD), formerly known as DowDuPont, set up Corteva (its agriculture business) as a separate company. DuPont shareholders received one Corteva share for every three shares they held. The company recently settled its dispute with activist investor Starboard Value, which owns about 2% of Corteva. As a result, it replaced four directors and is now looking for a new CEO. The company’s outlook remains positive, as farmers will continue to seek improved crop quality and higher yields, which ought to increase demand for Corteva’s seed and crop protection markets. The company also recently raised its dividend by 7.7%. The new annual rate of $0.56 a share yields 1.2%. Corteva is a buy. buy…