Analyst Note| Seth Goldstein, CFA |
On Jan. 21, activist investor Starboard Value announced it nominated eight directors to Corteva's board for election at the 2021 annual meeting. If successful, the investor would control a majority of the 12 seats. The goal of the activist is to replace current Corteva CEO Jim Collins due to what the activist cites as underperformance. After reviewing the nomination letter, we see no reason to change our outlook for the company. We maintain our $41 per share fair value estimate and wide-moat rating for Corteva. Shares were down roughly 5% at the time of writing and now trade around our fair value estimate. As such, we view the Corteva as fairly valued.