Maintaining $70 FVE With Few Surprises in Corteva's Results; Shares Slightly Undervalued

We are maintaining our $70 per share fair value estimate as Corteva's third-quarter results were in line with our outlook for the cadence of the year. Corteva's results in the quarter demonstrated the company's strong pricing power, which underpins our wide-moat rating. During the quarter, which has historically featured operating losses, Corteva generated nearly $100 million in operating EBITDA and positive operating earnings per share as higher prices more than offset cost inflation. The results are also in line with our long-term thesis that Corteva's expanding portfolio of premium products will lead to profit growth over time.