Mizuho analyst Edlain Rodriguez has revised the firm's price target for FMC Corporation (FMC, Financial), adjusting it from $49 down to $46 while maintaining a Neutral rating on the shares. This adjustment comes as the firm updates its price targets across the chemicals, agriculture, and packaging sectors to align with recent reductions in market multiples.
Despite these adjustments, Mizuho's outlook does not factor in a recession, reflecting only slight reductions in forward-year estimates. However, the firm anticipates that lower oil prices may erode the gas-linked cost advantage that several basic chemical stocks currently enjoy.
The firm also points out potential risks associated with pre-buying activities in the automotive and electronics sectors during the March quarter, which could lead to a short-term rollback in demand.
