Street View: Analysts cautious on FMC after pricing reset, outlook cut

By Reuters News

** Shares of agricultural chemicals maker FMC FMC.N fall 2.1% to $5.50 premarket

** FMC on Thursday slashed Q3 outlook and forecast up to $675 million in charges related to price cuts and changes to its US pricing model

** The company's shares plunged over 30% on Thursday


FMC HIT BY ANALYST DOWNGRADES


** Mizuho ("outperform") cuts price target to $10 from $12

** Brokerage expects industry-wide pricing pressure from generic competition to persist, especially in LatAm; says FMC's ongoing pricing challenges were the primary driver of the cut

** Adds: "We believe that management has already tried

almost everything and this is probably the last lever to pull"

** Jefferies downgrades FMC rating to "hold" from "buy"; cuts PT from $14 to $5

** "The current crop protection market remains at a trough, and the company has reduced pricing on a wide range of off-patent crop protection products," Jefferies says

** J.P. Morgan (neutral) cuts PT to $6 from $12

** Says FMC appears to be absorbing $625 million to $675 million in charges through lower prices and customer rebates, though the ultimate cash impact of those pricing actions remains unclear

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.