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Tuesday, shares of FMC Corp (NYSE:FMC) remained under the scrutiny of Citi, as the research firm reiterated its Neutral rating and $38.00 price target. During Citi’s Industrial Tech and Mobility Conference, FMC executives, including CEO Pierre Brondeau, President Ronaldo Pereira, and VP of FP&A Pat Day, discussed the company’s strategic priorities and financial outlook.
The company’s primary focus is on inventory management, ensuring that products sold are effectively reaching customers. FMC’s executives emphasized the importance of closely monitoring inventory levels to ensure they align with actual product usage in the field. Despite recent challenges, the company maintains a healthy 6.34% dividend yield and has maintained dividend payments for 19 consecutive years, as revealed by InvestingPro analysis.
The second priority outlined by FMC’s leadership is the acceleration of their Rynaxypyr strategy. This entails the introduction of three innovative products designed to offer ease of use, broader spectrum control, and resistance management. These products are expected to potentially generate $200 million in sales in the fiscal year 2025.
Regarding the first quarter of 2025, FMC confirmed that it is on course and making rapid progress in reducing inventory levels across North America, Europe, the Middle East, and Latin America. This update comes as the company aims to streamline operations and improve its financial performance.
Citi’s reaffirmation of the Neutral rating and price target suggests that while the firm acknowledges FMC’s strategic initiatives, it maintains a cautious stance on the stock’s valuation and future performance. The price target of $38.00 remains unchanged as FMC continues to navigate its operational and strategic objectives in the current fiscal year.
In other recent news, FMC Corp has been the subject of several analyst notes. KeyBanc Capital Markets reduced the stock’s price target from $55.00 to $51.00, maintaining an Overweight rating, citing challenges as the company’s diamides franchise transitions off-patent. Redburn-Atlantic downgraded FMC Corp from Buy to Neutral, setting a price target of $49.00, due to concerns over increased competition from generics as patents expire. Jefferies also adjusted its financial outlook for FMC Corp, reducing the price target to $49.00 from $61.00, while maintaining a Buy rating. UBS analyst Joshua Spector downgraded shares of FMC Corp from Buy to Neutral, significantly reducing the price target from $66.00 to $38.00, reflecting concerns over the company’s near-term prospects and potential long-term challenges.
FMC Corp also reported a fourth-quarter earnings per share (EPS) that exceeded the consensus, despite forecasting for 2025 that fell short of market expectations. The company has estimated its 2025 sales to be in the range of $4.15 to $4.35 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) projected to be between $870 and $950 million.
In other company news, FMC Corp has amended its existing credit agreement, extending the termination date of its $2.0 billion revolving credit facility by one year to June 17, 2028. This extension is part of FMC’s broader strategy to secure its long-term financial stability and flexibility. These are some of the recent developments concerning FMC Corp.
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