FMC Corporation (FMC) has been downgraded by BofA Global Research to "Underperform" from "Neutral," with a revised price objective of $48, down from $61. This downgrade is driven by a deteriorating outlook for FMC's diamide franchise, exacerbated by increased generic competition in Asia and new pricing pressures. The report highlights a "very soft Q1 outlook," raising concerns about the company's full-year guidance, which assumes strong volume growth starting in Q2. Additionally, FMC faces challenges with its leverage and dividend sustainability, with a potential dividend cut back on the table.
The report also notes that FMC's growth initiatives, including new product launches and a direct-to-grower sales force in Brazil, may take longer to materialize than expected. BofA states, "We see risk to this ramp, as we believe generic competition is more likely to intensify in 2026 vs 2025." The company's EBITDA guidance appears conservative, while revenue projections seem aggressive, leading to a disconnect in expectations.
FMC's current stock price is $34.89, reflecting a significant drop of 35.44% from the previous close of $54.04.