03:59 PM EDT, 06/14/2024 (MT Newswires) -- FMC's (FMC) recent leadership change, though unexpected, may help reset credibility after over a year of earnings outlook cuts, UBS said in a note sent Friday.

The change "we think is likely helpful for the stock," UBS said.

FMC said earlier this week it appointed Pierre Brondeau as chief executive officer, replacing president and CEO Mark Douglas, who has stepped down after 14 years with the company

The "abrupt" leadership change and other negative data points on crop chemicals inventory and demand could prolong return to normalcy and a potential cut to 2024 guidance, UBS said.

For the bullish side, the company is expected to benefit from around $60 million in cost savings, a potential divestment of non-core turf management chemicals. If volume recovery is slow, the company may consider additional cost saving measures.

UBS decreased its price target for FMC to $81 from $86 with a buy rating.

Price: 55.04, Change: -0.38, Percent Change: -0.68