Mizuho has listed its preferred equity selections in the U.S. Industrials complex, focusing on firms it believes are positioned to navigate current macro pressures and recover operational momentum. The bank emphasized companies with defensible revenue drivers and management teams executing strategic transformations.
Below are the two stocks Mizuho highlighted and the rationale behind each recommendation.
1. Corteva (CTVA) - Outperform, $94 price target
Mizuho assigns an Outperform rating to Corteva and has set a $94 price target on the shares. The agricultural company carries a market capitalization of $56.8 billion.
The agricultural sector is facing headwinds from lower crop prices that have reduced farmer income, but Mizuho notes that Corteva’s seed portfolio is relatively resilient within the industry because farmers tend to prioritize seed purchases over other agricultural inputs. A key part of the firm’s view is Corteva’s planned separation of its seed operations - to be called Vylor - from its crop protection unit - to be called New Corteva.
Regulatory steps for the split are progressing, with SEC filings expected soon and investor days scheduled for September 15. The separation is anticipated to be completed in the fourth quarter. Mizuho reports that first-half results tracked better than expected, which it views as de-risking the second half of the year. The bank also suggests that, as a standalone company, Vylor could attract valuation characteristics more akin to a biotech company than a traditional agricultural peer.
Mizuho’s $94 target is derived from valuation multiples applied to the two post-split businesses: roughly 17 times EBITDA for the seed segment and 10.5 times for the crop protection unit. Those multiples translate into an implied 14.5 times multiple on the firm’s 2027 EBITDA estimate of $4.3 billion.
2. Stanley Black & Decker (SWK) - Outperform, $110 price target
Stanley Black & Decker also received an Outperform rating and a $110 price target from Mizuho. The company has a market capitalization of $14.6 billion.
Mizuho’s note outlines several of the headwinds the company has faced, including material tariff duties, supply chain disruptions, and weaker consumer spending. According to the bank, Stanley Black & Decker has addressed post-pandemic inventory dislocations and normalized demand patterns.
Management changes have been followed by a multi-year cost reduction program targeting $2 billion in savings, with benefits expected to carry into 2026. A recent Supreme Court decision that invalidated broad reciprocal tariffs removed a notable obstacle for the company; Stanley Black & Decker had absorbed over $600 million in tariff-related costs. The firm also sold its CAM business for about 20 times EBITDA, and that transaction helped reduce net leverage to roughly 2 times.
Mizuho’s $110 price target for SWK is based on a 2027 EV/EBITDA multiple of 10.2 times, which the bank notes is below the peer group average of 16.5 times.
The selections reflect Mizuho’s preference for industrials with structural resilience or active portfolio and cost management that can improve fundamentals even as commodities and consumer demand remain uneven.