Analyst Vincent Andrews from Morgan Stanley maintained a Hold rating on FMC (FMC – Research Report) and decreased the price target to $46.00 from $70.00.
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Vincent Andrews has given his Hold rating due to a combination of factors that affect FMC’s current and future performance. The company is undergoing a strategic reset that has led to a reduction in its price target from $70 to $46, primarily due to a lower EBITDA outlook and a decreased target multiple. Andrews highlights that investor confidence may not return until FMC demonstrates its ability to meet its 2025 EBITDA guidance and addresses the issue of elevated channel inventory levels.
Furthermore, there are concerns about increased generic competition for FMC’s key product, Rynaxypyr, which could occur more quickly and in more markets than previously anticipated. These strategic challenges, coupled with the company’s financial leverage and execution risks associated with its new strategy, contribute to the Hold rating. Andrews notes the renegotiated debt covenants allowing a leverage ratio as high as 5x by the end of 2025, adding another layer of caution for investors.
Andrews covers the Basic Materials sector, focusing on stocks such as Eastman Chemical, Mosaic Co, and Sherwin-Williams Company. According to TipRanks, Andrews has an average return of 6.0% and a 64.94% success rate on recommended stocks.
In another report released today, RBC Capital also downgraded the stock to a Hold with a $47.00 price target.