Jefferies cuts FMC Corp stock price target to $49, maintains buy

Published 10/02/2025, 12:06
Jefferies cuts FMC Corp stock price target to $49, maintains buy

On Monday, Jefferies adjusted its financial outlook for FMC Corp . (NYSE:FMC), reducing the price target to $49.00 from the previous $61.00, while still endorsing the stock with a Buy rating. The revision follows FMC Corp.’s recent earnings report and future projections, which indicated a mixed financial picture for the company. Currently trading at $34.54, near its 52-week low of $33.80, InvestingPro analysis suggests the stock is undervalued, with 12 additional real-time insights available to subscribers.

FMC Corp. reported a fourth-quarter earnings per share (EPS) that exceeded the consensus by $0.19. Despite this positive result, the company’s forecast for 2025 fell short of market expectations, with an anticipated EPS of $3.26 to $3.70 versus the projected $4.36. The lower guidance is attributed to several factors that are expected to impact sales and profitability. The company maintains a healthy dividend yield of 6.72% and trades at a P/E ratio of 12.6x.

According to Jefferies, FMC Corp. is likely to face sales headwinds in 2025 due to destocking challenges and contract-based price adjustments. Additionally, inventory reductions are anticipated to constrain the company’s margin growth. However, these negative factors are expected to be partially mitigated by a projected $150 million in restructuring savings.

For 2025, FMC Corp. has estimated its sales to be in the range of $4.15 to $4.35 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) projected to be between $870 and $950 million. Looking further ahead, the company anticipates a substantial increase in its financial performance, with sales expected to climb to $5.2 billion and EBITDA to reach $1.2 billion by the year 2027.

The revised price target and maintained Buy rating by Jefferies reflect a nuanced view of FMC Corp.’s financial trajectory, acknowledging near-term challenges while expressing confidence in the company’s longer-term growth potential.

In other recent news, FMC Corp has been in the spotlight due to a series of analyst downgrades and concerns over its financial performance. UBS analyst Joshua Spector downgraded FMC Corp from Buy to Neutral, citing concerns over the company’s near-term prospects and potential long-term challenges. This followed FMC Corp’s Q4 earnings report, which, despite surpassing EPS expectations, saw revenue fall short of consensus estimates.

Furthermore, the company’s full-year 2025 EPS outlook and revenue forecast did not meet analyst projections, leading to a slew of downgrades from firms including RBC Capital, BofA Securities, and Mizuho (NYSE:MFG) Securities. These firms expressed concerns ranging from the company’s ability to navigate inventory management challenges to its financial leverage and dividend sustainability.

BofA Securities downgraded FMC Corp from Neutral to Underperform and reduced the price target for FMC stock to $48. Mizuho Securities maintained a Neutral rating but reduced the price target to $51. RBC Capital also downgraded FMC Corp from Outperform to Sector Perform, significantly reducing the price target to $47.00.

These recent developments indicate a broad skepticism among analysts regarding FMC’s ability to navigate its current challenges. However, the analysts’ feedback suggests that successful execution and management through this challenging environment will be crucial for FMC Corp to regain credibility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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