Agricultural Science Company FMC Pressured From Worst Supply Chain Correction: Analyst
Portfolio Pulse from Lekha Gupta
Mizuho Securities analyst Edlain Rodriguez downgraded FMC Corp (NYSE:FMC) to Neutral from Buy, maintaining a price target of $59. The downgrade is attributed to expected earnings pressure in H2 FY23 due to a significant pesticide inventory correction and concerns about generic competition. Despite long-term opportunities, near-term uncertainties may affect investor confidence until management proves its ability to deliver. FMC's FY24 revenue outlook is $4.65 billion-$4.85 billion, with adjusted EBITDA of $1.025 billion-$1.125 billion, and free cash flow conversion over 100%. FMC shares are up 1.74% at $56.17.
December 07, 2023 | 7:52 pm
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NEGATIVE IMPACT
FMC Corp downgraded to Neutral by Mizuho Securities due to H2 FY23 earnings pressure from supply chain issues and generic competition. Long-term potential remains, but current uncertainties may hinder investor confidence.
The downgrade by a significant analyst due to supply chain and competition concerns is likely to negatively impact investor sentiment in the short term. Although the long-term outlook remains positive, the immediate reaction to such news is typically a decrease in stock price, as it signals potential challenges ahead for the company.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100