On Tuesday, an analyst from Oppenheimer maintained a positive outlook on shares of Corteva Inc. (NYSE:CTVA), reiterating an Outperform rating with a $69.00 price target. The analyst highlighted the undervalued potential of Corteva's Seed business, suggesting that the sector is at the beginning of a long-term growth phase driven by advancements in gene editing technology.
Corteva's recent investment in Pairwise, a company specializing in gene-edited produce, was cited as further evidence supporting the analyst's thesis. Pairwise, which leverages its Fulcrum (LON:FMETF) gene editing platform, has successfully brought to market gene-edited leafy greens, as well as seedless and thornless blackberries. Additionally, Pairwise has entered into a development agreement with Bayer (OTC:BAYRY) to create short-stature corn.
The investment in Pairwise includes a $25 million equity stake by Corteva, marking the lead investment in Pairwise's $40 million Series C funding. This move forms part of a five-year joint venture (JV) that aims to enhance the range of tools and crops each company has access to, with the objective of accelerating the development of new genetic technologies.
For Corteva, the collaboration with Pairwise is expected to complement its own internal biotech development efforts. The JV is designed to expand the capabilities of both companies in the field of agricultural biotechnology, potentially leading to new innovations in the seed industry.
Corteva's strategic investment and partnership with Pairwise reflect the company's commitment to advancing its position in the agricultural biotech space.
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