Barclays Downgrades FMC Corp. (FMC) to Underweight

Barclays analyst Benjamin Theurer downgraded FMC Corp. (NYSE: FMC) from Equalweight to Underweight with a price target of $13.00 (from $16.00).

The analyst comments: "We downgrade FMC to UW with PT $13 (from EW with PT $16) based on share loss and margin pressure in FMC's core product segment ($2.5B, ~60% FY24 revenues) and a decline in major diamide lines (Rynaxypyr) up to 30% in 2026, partially offset by volume and cost actions. As a whole, we model flat earnings 2025-2028 and do not bake in much near-term growth in the next three years.
At the same time, as FMC embarks on both a business portfolio and balance sheet restructuring in 2026 in hopes of lowering leverage, we would assume that this requires financial flexibility. As a new member of the high-yield credit segment, FMC will not have access to cheaper commercial paper – and therefore will have to turn to more expensive forms of funding including bank loans. The recently cut dividend was not enough to save the weaker EBITDA expectation, and as Fitch’s downgrade cited execution risks at FMC alongside increased competition in Latam, we see this as at least a medium-term placement."

For an analyst ratings summary and ratings history on FMC Corp. click here. For more ratings news on FMC Corp. click here.

Shares of FMC Corp. closed at $13.10 yesterday.

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