FMC downgraded at Jefferies as 'visibility deteriorates, again' with guidance cut (FMC:NYSE)

FMC Corp. (FMC) rebounded 1.7% in Friday's trading after plunging 31% in the previous session when the agricultural chemicals company slashed its Q3 revenue guidance to $65M-$125M, far below consensus estimates, with an adjusted EBITDA loss of $510M-$565M, compared to its previous outlook for positive $120M-$140M. Following the guidance cut, Jefferies analysts Daniel Rizzo and Charles Boakye downgraded FMC (FMC) shares to Hold from Buy with a new $5 price target, citing limited visibility, macro headwinds, and persistent pressure from generics. The current crop protection market remains at a trough, and FMC (FMC) moved to reduce pricing on a wide range of off-patent crop protection products and simplify its North American pricing strategy, no longer using the high-gross margin, high-rebate model; as a result, the company cut its Q3 revenue and EBITDA projections, Rizzo and Boakye said. Commodity pricing pressures will likely persist through the 2027 growing seasons, the analysts said, estimating a ~10% pricing decline next year in the core portfolio -- offsetting 1%-2% volume growth -- with rynaxypyr posing another $100M headwind. On the positive side, new products including biologicals likely remain on track, and the benefits from the footprint optimization likely will be evident by H2 2027, according to Rizzo and Boakye, adding that Fluindapyr continues to ramp, and Dodhylex and Isoflex are positioned for significant growth beginning in 2028. More on FMC Corp. Create Your Free Account to Keep Reading Get the confidence to navigate an uncertain market with free breaking news and stock alerts.

FMC downgraded at Jefferies as 'visibility deteriorates, again' with guidance cut (FMC:NYSE) | Seeking Alpha

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