FMC's (FMC) Q1 results were weighed down by pricing headwinds from cost pass-through and generic competition, which are likely to persist through the rest of H1, RBC Capital Markets said in a note emailed Friday.
The firm said that FMC expects new product launches and growth in the plant health segment to drive year-over-year improvement in H2, but the company would need a solid H2 beat to boost investor confidence.
Price and foreign exchange pressures remained a headwind in April, slightly offset by better volume and costs, RBC said.
FMC expects destocking to be largely resolved by the end of Q2 in all regions except Asia, according to the note.
The firm maintained its sector perform rating on FMC's stock with a $40 price target.
Shares of FMC were down 1.5% in recent trading.
Price: 37.89, Change: -0.56, Percent Change: -1.46
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