Mizuho has raised its rating for FMC Corporation (FMC, Financial) from Neutral to Outperform, simultaneously increasing the stock's price target to $49, up from the previous $46. This revision is informed by the stock's valuation, which currently trades at 8.5 times its expected EBITDA for the next 12 months, a multiple that approaches the lowest since FMC's significant restructuring in 2017.
The financial institution considers the current price as having limited downside risk and identifies the risk/reward scenario for FMC as appealing. Mizuho acknowledges that the company is confronting certain challenges, which are largely accounted for in the current share price. However, they anticipate that investor attention will soon pivot to FMC's medium- and long-term growth prospects, underpinned by innovative products expected to provide substantial value.
