FMC (FMC) faces several risks to its 2025 outlook such as increasing leverage, limited free cash flow, and ongoing headwinds for its diamide products, BofA Securities said in a Wednesday note.
The company reported its Q4 results late Tuesday, with higher adjusted earnings and revenue, and issued its outlook for Q1 and 2025. According to BofA Securities, FMC's Q1 guidance was "very soft" and 2025 targets were "weak" overall.
"FMC's diamide updates included a worse-than-expected outlook," the investment firm said, noting that the business' generic competition continued to expand.
BofA Securities said the company also faces the risk of downgrade to a non-investment grade credit rating and growth initiatives could take longer than expected to deliver benefits.
BofA Securities downgraded FMC to underperform from neutral and lowered its price target to $48 from $61.
Shares of FMC were down more than 33% in recent Wednesday trading.
Price: 35.85, Change: -18.19, Percent Change: -33.66