Aristotle Value Equity Fund on Corteva
Thesis
Corteva's near-term outlook has been pressured by tariff concerns, oil-related input costs, farmer fuel expenses and competitive crop-protection pricing. Aristotle nevertheless believes the investment thesis remains intact as farmers continue adopting newer hybrids, varieties and premium crop-protection products, supporting margin expansion. R&D-led innovation, cost discipline, a path toward net royalty income and continued shareholder returns are expected to strengthen Corteva's competitive position over time.
“Nevertheless, our investment thesis remains intact.”
Key risks
- Tariffs
- Higher oil-related input costs
- Higher farmer fuel expenses
- Competitive crop-protection pricing
- Potential dis-synergies from the planned corporate separation