Corteva's (CTVA) Vylor is targeting strong growth through 2029, driven by its core products and strong execution, RBC Capital Markets said in a note Tuesday following its investor day event.

The company said Monday its board has approved the separation of its seed business into a publicly traded company, Vylor, through a pro rata stock dividend.

RBC analysts said Vylor management expects sales to grow 3% to 4% annually through 2029, while EBITDA is expected to grow 7% to 8% annually.

"We remain positive on the spin, and expect Vylor to fetch a mid-high teens EBITDA multiple," the report said.

"It could see high-single-digit percentage organic EPS growth and low-double-digit percentage EPS growth after M&A/buybacks," it added.

RBC has an outperform rating and a $103 price target on Corteva.

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