12 Biggest Lithium Stocks to Buy According to Hedge Funds

2. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 41

FMC Corporation (NYSE:FMC), founded in 1883 as an insecticide manufacturer, is an American chemical manufacturing company that has since expanded into other industries. FMC Corporation (NYSE:FMC) has spent decades developing and producing lithium amides, lithium alkoxides, lithium metal hydrides, alkyllithiums, and aryllithiums. These compounds are useful as reducing agents in the production of agricultural and pharmaceutical intermediates.

On January 21, Barclays analyst Benjamin Theurer upgraded FMC Corporation (NYSE:FMC) from Equalweight to Overweight, while maintaining a $65 price target. According to the analyst, the market expects an EV/EBITDA multiple of 9.3 times in 2025, based on Bloomberg consensus estimates, while the historical average for FMC is 12-13 times. Theurer provides a more optimistic assessment of the stock’s future performance, citing the historical multiple to suggest that the stock’s “normalized” pricing may exceed the current price target.

In the third quarter of 2024, FMC Corporation (NYSE:FMC) reported 12% organic sales growth and 9% sales growth. The company expects a 32% increase in EBITDA and a 19% increase in sales in the fourth quarter of the same year. By 2025, the company hopes to increase revenue by about 6%, at a potential cost of $200 million. As part of its ongoing innovation efforts, FMC plans to launch four new active ingredients and save $125 million to $150 million through restructuring by 2024.