UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on FMC Corp. as Minerals Spin Appears Logical

In a report published Thursday, Bank of America analyst Kevin W. McCarthy reiterated a Neutral rating on FMC Corp. FMC, and raised the price target from $77.00 to $86.00. In the report, Bank of America noted, “We favor FMC's plan to separate its two Minerals lines (soda ash and lithium) via a tax-free spin-off. We believe separation will create shareholder value on a net basis as the benefits of more optimal capital allocation outweigh incremental costs incurred through dis-synergies and a likely increase in cost of capital for FMC Minerals. We remain Neutral, yet raise our PO to $86 from $77.” FMC Corp. closed on Wednesday at $80.25.