FMC Corp maintains stock target with Outperform rating on leadership transitions By Investing.com

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On Tuesday, RBC Capital maintained an Outperform rating on FMC Corp (NYSE:FMC) with a stock price target of $81.00. The firm’s positive stance is influenced by the recent executive changes at FMC, including the appointment of the new CEO, Brondeau, and Pereira as President. These leadership transitions are viewed as beneficial due to their extensive experience within the company and the industry.

FMC Corp has confirmed that the decision for the former CEO, Douglas, to step down was a mutual agreement with the Board. The company also upheld its second-quarter EBITDA and revenue guidance, projecting figures between $170 million to $210 million and $1.0 billion to $1.15 billion, respectively. These forecasts align closely with RBC Capital’s and other street estimates.

The company did not provide any new commentary on its full-year 2024 EBITDA guidance, which is set at $900 million to $1.05 billion, and revenue guidance of $4.5 billion to $4.7 billion. These figures are in line with RBC Capital’s and other analysts’ expectations. Brondeau is expected to review these guidance ranges and may offer updates during the second-quarter earnings call in August.

RBC Capital also noted the current state of the crop protection markets, which are experiencing destocking in Europe, Brazil, and India, expected to continue through the end of the year. However, destocking appears to be more advanced in North America. Despite this trend, the firm anticipates modest year-over-year growth in the second half of the year, supported by healthy application rates and favorable comparisons to the previous year.

In other recent news, FMC Corporation (NYSE:) has experienced a flurry of significant developments. The company has confirmed its second quarter 2024 revenue and earnings guidance. Leadership changes have also been announced with Pierre Brondeau reassuming his role as CEO and Ronaldo Pereira taking on the role of president. FMC has also expanded its portfolio with the registration of two new herbicides, Azugro® and Ezanya®, in Brazil.

Furthermore, the firm has entered into a research collaboration with AgroSpheres to expedite the development of innovative bioinsecticides.

In the financial realm, various firms have adjusted their stock targets for FMC. RBC Capital Markets raised its price target for FMC to $81, citing anticipated volume growth in the second quarter and the strength of new product growth.

KeyBanc Capital Markets followed suit, increasing its price target to $81, predicting a positive shift in FMC’s EBITDA in the near future. Meanwhile, BMO Capital Markets adjusted its price target for FMC to $62, anticipating a slight increase in the company’s 2024 earnings estimates.

These are recent developments and it’s important to note that Morgan Stanley has maintained its Equalweight rating on FMC Corp shares, despite the company’s shares approaching a five-year low. The return of Pierre Brondeau as Chairman and CEO has raised questions among investors about the potential for reduced projections for the second half of 2024.

The company’s future performance may hinge on changes in the sales cycle or potential decreases in shipments in the Latin American market, particularly Brazil.

InvestingPro Insights

In light of RBC Capital’s Outperform rating on FMC Corp, recent InvestingPro data and tips provide additional context for investors. The company’s market capitalization stands at $7.1 billion, with a compelling P/E ratio of 6.27, indicating potential undervaluation relative to earnings.

The adjusted P/E ratio for the last twelve months as of Q1 2024 is even lower at 5.42. Despite a significant revenue decline over the past year, FMC Corp has maintained a strong dividend yield of 4.22%, a testament to its commitment to shareholder returns, having raised its dividend for 6 consecutive years and maintained payments for 19 consecutive years.

InvestingPro Tips highlight that while analysts have revised their earnings downwards for the upcoming period and net income is expected to drop this year, the company remains profitable with a robust gross profit margin of 39.14% over the last twelve months as of Q1 2024. Still, investors should be aware that the stock has experienced a decline over the last month, with a 1-month price total return of -18.57%.

For those interested in more in-depth analysis, InvestingPro offers additional tips to help navigate these metrics. Using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into FMC Corp’s financial health and future prospects. With 6 more InvestingPro Tips available, investors can make more informed decisions in the context of the company’s recent leadership changes and market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.



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