President Donald Trump is all set to impose tariffs on agricultural products on April 2, while China and Canada have already announced retaliatory tariffs on several items, including food and farm products. Yet, shares of FMC Corp (FMC 7.27%), which calls itself an agricultural sciences company and sells chemicals, surged today and were trading 6% higher as of 1:30 p.m. ET Wednesday.
An analyst downgraded the price target on the agriculture stock but still expects significant upside. Investors are, perhaps, also betting on the CEO's latest move.
An analyst at Seaport Global slashed FMC stock's price target to $55 per share from $72 a share, citing a weak, global macroenvironment and the potential impact of tariffs on demand for agricultural products.
Seaport Global's price objective, however, still means an upside potential of nearly 41% from FMC's stock price as of the time of this writing. The firm believes that specialty chemicals companies like FMC could still be able to navigate any impact of tariffs on input costs through procurement and pricing.
Meanwhile, FMC CEO Pierre Brondeau is scooping up the stock. A regulatory filing dated March 4 reveals that Brondeau bought 54,000 shares of FMC worth roughly $1.9 million after buying some shares last month as well. With FMC stock trading just about 8% off its 52-week low as of the March 4 closing price, Brondeau perhaps sees value in it.
FMC sells insecticides, herbicides, and fungicides, and gets the bulk of its revenue from outside the U.S. FMC's largest market is Latin America, followed by North America, Europe, the Middle East and Africa (EMEA), and Asia. In fiscal year 2024, only 27% of FMC's revenue came from North America.
Since FMC also sources critical material from several suppliers outside the U.S., especially China, tariffs could threaten growth. FMC already expects a tough year ahead. Last month, FMC stock crashed after management projected flat revenue growth at the midpoint and a 51% drop in its free cash flow at the midpoint for 2025.
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