FMC Corp. (FMC) Could Present Buying Opportunity in Move to Higher-Margin Businesses

FMC Corp (NYSE: FMC) is active following a positive mnetion last weekend.

Barron's said it sees that chemicals maker rising 50 percent within the next year or two given recent market trends and operating performance.

Shares of FMC fell 15 percent from a September announcement that it would buy Cheminove for about $1.8 billion and cancel previous expectations of spinning off its minerals business. Expectations for weaker farm spending also exacerbated this movement.

At current levels, shares are going for 12.6 times FY15 estimates, which could indicate a softer market is already priced in.

Divesting its Alkali Chemicals unit and the addition of Cheminova will mean agricultural sales could account for 77 percent of the company's total, up from 55 percent currently. The efforts are in-line with CEO Pierre Brondeau's move to bolster the higher-margin business.

The rest of Barron's piece can be seen here. Shares of FMC are modestly higher.

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