Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Loop Capital: ‘We’d Be Buyers’ Of Recent Pullback In FMC Corp

Courtesy of Benzinga.

FMC Corp (NYSE: FMC) reported fourth quarter results, showing 42 percent year-over-year revenue growth and above-consensus bottom-line result. The company also issued upbeat adjusted earnings per share guidance for the fiscal year 2018 and the first quarter.

The Analyst

Loop Capital Markets analyst Chris Kapsch has a Buy rating on FMC and upped his price target from $108 to $111.

The Thesis

FMC’s Q4 results and 2018 outlook and the management’s overall strategic narrative are quite positive, Kapsch said in a note. Strong Agricultural Solutions segment sales and earnings, particularly in the company’s legacy business, should allay concerns about soft Latin American demand and/or the potential for a weak Safrinha season, the analyst said.

Kapsch expects the company to outgrow the overall Ag market in 2018 due to reduced channel inventories in its legacy product lines and the broader global adoption of the acquired DuPont pesticides.

“Positive momentum should be sustained throughout 2018, and arguably over at least the next several years, based on FMC’s commentary,” Loop Capital said.

As such, the firm slightly reduced its 2018 earnings per share estimate, citing an unexpectedly higher tax rate. With the upward revision to EBITDA numbers, the firm increased its price target to $111, suggesting roughly 36 percent upside from current levels.

“Accordingly, we view the recent pullback in FMC shares as a truly compelling buying opportunity,” the firm said.

The Price Action

FMC Corp shares are up about 40 percent over the past year, although they’re down about 13 percent for the year-to-date period.

Related Links:

6 Deals Are Live In Chemical Sector: Where Do They Stand?

Newly Merged DowDuPont Gets A Bullish Call From Goldman

Latest Ratings for FMC

Date Firm Action From To
Feb 2018 Credit Suisse Maintains Outperform Outperform
Feb 2018 Citigroup Upgrades Neutral Buy
Dec 2017 Stephens & Co. Initiates Coverage On Equal-Weight

View More Analyst Ratings for FMC


View the Latest Analyst Ratings

Posted-In: Chris Kapsch Loop Capital MarketsAnalyst Color Price Target Analyst Ratings


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!