FMC: Shares Rally as Management Begins to See End of Inventory Destocking

On Feb. 29, FMC shares rallied in the late afternoon and finished the day up 10% following remarks from CFO Andrew Sandifer that FMC is beginning to see the end of customer inventory destocking and a return to normal demand. The commentary is in line with our view that crop chemical inventory destocking among farmers and farm retailers would prove temporary and largely be completed by early 2024. We forecast FMC will deliver revenue growth and a small adjusted EBITDA increase in 2024 versus 2023. With no changes to our outlook, we maintain our $110 fair value estimate. Our narrow moat rating is also unchanged.