FMC downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Arun Viswanathan downgraded FMC (FMC) to Sector Perform from Outperform with a price target of $47, down from $78. When reporting Q4, FMC noted significant near-term volume headwinds going into Q1 from excess channel inventories in multiple countries and slower buying from U.S. farmers in Q1 given initiatives to keep inventories low, the analyst tells investors in a research note. In fiscal 2025, RBC expects FMC’s volume headwinds to persist, and says continued destocking is likely to weigh on its margins from fixed cost absorption. Pricing and currency are also headwinds, and continued economic weakness will result in a prolonged period of earnings weakness for the company, the firm adds.