FMC Corp Faces Significant Price Target Cuts Amid Downgraded Q2 And 2023 Forecasts

Several analysts cut the price target of FMC Corp FMC as the company reduced Q2 and 2023 guidance yesterday. 

The company reduced expectations of Q2 revenues to $1.00 billion-$1.03 billion (from $1.42 billion-$1.48 billion earlier, vs. consensus of $1.45 billion) and adjusted EBITDA to $185 million-$190 million (from $350 million-$370 million). 

Also, FMC cut guidance for 2023 revenues to $5.20 billion-$5.40 billion (from $6.08 billion-$6.22 billion earlier, vs. consensus of $6.11 billion) and adjusted EBITDA to $1.30 billion-$1.40 billion (from $1.50 billion-$1.56 billion previously).

Maintaining a Buy rating, Mizuho Securities lowered the price target to $127 from $147, and Loop Capital reduced the target to $118 from $148.

Mizuho analyst Christopher Parkinson slashed EBITDA estimates to $1.34 billion (from $1.55 billion) for 2023 and $1.53 billion (from $1.68 billion) for 2024.

At an Overweight rating, Morgan Stanley cut the price target to $110 from $145, and Keybanc Capital Markets lowered the target to $128 from $144.

Keybanc analyst lowered the EPS estimate to $6.24 (from $7.74, consensus: $7.10) for 2023 and $8.09 (from $8.55, consensus: $8.31) for 2024.

Affirming an Outperform rating, RBC Capital Markets reduced its target to $105 from $136, and BMO Capital Markets slashed its target to $120 from $145.

RBC Capital analyst Arun Viswanathan decreased estimates for Q2 revenue to $1.00 billion (from $1.452 billion), EBITDA to $185 million (from $360 million), and EPS to $0.62 (from $1.78).

Also, the analyst lowered 2023 estimates for revenue to $5.24 billion (from $6.14 billion), EBITDA to $1.30 billion (from $1.53 billion), and EPS to $6.11 (from $7.65). Also, the 2024 estimate for revenues and EBITDA was cut to $5.62 billion (from $6.58 billion) and $1.50 billion (from $1.727 billion), respectively.

Also, BMO Capital analyst Joel Jackson lowered estimates for Q2 EPS to $0.55 (from $1.71) and EBITDA to $188 million (from $361 million). He now expects 2023 EPS and EBITDA of $6.41 (from $7.65) and $1.350 billion (from $1.531 billion). 

At Underperform rating, Credit Suisse reduced their target to $101 from $120. 

Credit Suisse analyst Edlain Rodriguez slashed estimates for Q2 EBITDA to $188 million (from $318 million) and EPS to $0.71 (from $1.78) as well as 2023 EBITDA to $1.35 billion (from $1.53 billion) and EPS to $6.57 (from $7.63). 

Price Action: FMC shares are trading lower by 0.94% at $91.76 on the last check Tuesday.