Piper Jaffray Cuts Price Target on FMC Corp. (FMC) Following Pre-Released 3Q and Revised FY15 Guidance

Piper Jaffray reiterated a Neutral rating on FMC Corp. (NYSE: FMC), and cut the price target to $33.00 (from $50.00), fololwing a negatively pre-released 3Q and revised FY15 guidance. The company is citing the nearly 30% decline in the Brazilian Real, where FMC's sales are heavily concentrated.

Analyst Brett Wong commented, "FMC negatively pre-released 3Q and revised FY15 guidance expecting a weak 2H15 in Brazil following the significant decline of the Brazilian Real and what we hear to be elevated channel inventory. From our discussions with growers, farmers still seem to be in fine economic shape, but the issue is that dealers do not seem to be re-stocking after producers stuffed the channel last season. We will dig into the severity of the inventory as well as what demand looks like this week while we travel through Brazil. Management announced additional cost cutting initiatives including layoffs which seems to be a theme amongst our coverage. We are lowering our FY15 EPS estimate to $2.30 ($3.08 prior), modestly below the newly revised guidance, with our expectations 4Q will continue to be weak, and our FY16 estimate to $3.00 ($3.83 prior). With the peer group multiple contracting our price target moves to $33 ($50 prior) and we remain Neutral."

For an analyst ratings summary and ratings history on FMC Corp. click here. For more ratings news on FMC Corp. click here.

Shares of FMC Corp. closed at $37.53 yesterday.

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