Goldman Sachs Agri Stock Picks: Corteva's R&D Edge, FMC's Pipeline, And Mosaic's Phosphate Advantage Set Up Strong Growth

Core Viewpoint - The agricultural macro environment is stabilizing post-Russia-Ukraine war peak, with expectations for improved conditions in Spring 2025, driven by higher corn acreage and a short Fall application window, but a drift towards normalized levels is anticipated later this year [1] Company Summaries Corteva, Inc. (CTVA) - Coverage initiated with a Buy rating and price forecast of 71, highlighting strong seed and crop protection business poised to benefit from significant cost tailwinds in 2025 [2] - The company's focus on R&D compared to crop protection provides substantial pricing power, allowing it to maintain strong pricing even during down-cycles [2] FMC Corporation (FMC) - Coverage initiated with a Buy rating and price forecast of 51, noted as the only pure-play crop protection firm in the group [3] - Promising post-patent strategy for Rynaxypyr and an R&D pipeline expected to yield dividends by 2027+ [3] - Market undervaluation of potential growth from new product launches in 2026/27 and beyond, with current consensus estimates below FMC's 2027 guidance targets [4] Mosaic Company (MOS) - Coverage initiated with a Buy rating and price forecast of $31, favored due to phosphate's favorable supply-demand outlook heading into 2025 [4] - Limited capacity growth and rising demand from farmers and LFP EV batteries are key factors [5] - Potential for improved capacity utilization and margin boosts during a period of strong phosphate stripping margins, provided production disruptions are avoided [5]