Vertical downgrades FMC to Underperform on ‘mounting’ stresss

Vertical Research downgraded FMC (FMC) to Underperform from Hold with a price target of $14, down from $16. The firm sees potential for “mounting fundamental and financial stress” at FMC. The company’s restructuring actions will take time to drive higher earnings and cash flow, the analyst tells investors in a research note. FMC disclosed another amendment to its credit agreement Monday night, which indicates growing downside risk to earnings in the coming quarters, contends Vertical. The firm thinks rising input costs from the Middle East war adds more incremental pressure for FMC.