BofA Securities Downgrades FMC Corp. (FMC) to Underperform, 'Cautious about earnings recovery'

BofA Securities analyst Steve Byrne downgraded FMC Corp. (NYSE: FMC) from Neutral to Underperform with a price target of $57.00 (from $60.00).

The analyst comments "We are downgrading FMC to Underperform due to a lack of conviction about a near-term earnings recovery. We estimate FMC’s volume contraction in 2023 at 20%, more than offsetting the prior 2-yr volume gain of 18%, assuming global inventory levels of crop chemicals are now approaching normal levels, which suggests flattish underlying demand. The lack of visibility about monitoring and managing channel inventory levels will need to be improved. We also have concerns that the relatively undisciplined global crop chemical industry (vs seed producers) could lead to aggressive price actions in 2024 in response to cautious inventory rebuilds. Our $57 PO is based on a 10x EV/EBITDA, below the 12-13x range we have used in prior years as the robust sales volumes from 2021-2022 were not sustainable."

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 $58.21 yesterday.

You May Also Be Interested In

• Enovix Corporation (ENVX) PT Lowered to $5 at BofA Securities
• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• Deutsche Bank Downgrades Netskope (NTSK) to Hold on Valuation