Wells Fargo analyst Richard Garchitorena maintained a Hold rating on FMC (FMC – Research Report) yesterday and set a price target of $60.00.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Richard Garchitorena’s rating is based on a combination of factors, including FMC’s recent earnings performance and future outlook. Although FMC exceeded expectations in the fourth quarter of 2024 with better margins and increased volumes, the company’s guidance for the first quarter of 2025 and the full year is significantly below forecasts. This decline in outlook is attributed to renewed destocking pressures, weaker pricing, and a challenging demand environment.
Additionally, FMC’s first quarter 2025 guidance reflects substantial decreases in both EBITDA and adjusted EPS compared to estimates, indicating potential struggles in the near term. The full-year guidance also suggests limited growth, with anticipated challenges such as cautious customer purchasing behavior, higher costs, and negative foreign exchange impacts. Despite some positive factors like lower cost of goods sold and volume growth, these headwinds contribute to a cautious stance, leading to the Hold rating.
According to TipRanks, Garchitorena is a 2-star analyst with an average return of 0.7% and a 54.55% success rate. Garchitorena covers the Basic Materials sector, focusing on stocks such as Mosaic Co, FMC, and Nutrien.
In another report released today, RBC Capital also downgraded the stock to a Hold with a $47.00 price target.