Analyst Note
| Seth Goldstein, CFA |FMC reported third-quarter results that were generally in line with our expectations. Adjusted EBITDA was up 12% from the prior-year quarter as volume growth and higher prices were partially offset by increased costs. While costs rose faster than prices during the quarter, we expect FMC will continue to increase prices and will be able to eventually pass along all cost inflation. We have updated our 2022 outlook to account for higher volume growth. Given our forecast for crop prices to remain elevated next year, we expect strong farmer demand for crop protection products in 2022. With the rest of our forecast largely unchanged, we raise our FMC fair value estimate to $112 per share from $108. Our narrow moat rating is unchanged.