FMC Guidance Cuts Due to Patent Expiration, Debt, High Channel Inventory, Morgan Stanley Says

11:12 AM EST, 11/02/2026 (MT Newswires) -- FMC (FMC) has faced multiple challenges over the past two years amid headwinds in the broader crop protection industry, but company-specific issues like patent expirations affecting about 35% of its revenue, heavy debt, poor cash collection, and high channel inventory have contributed to guidance cuts and credit rating downgrades, Morgan Stanley said in a note Monday. The brokerage said the mid-October sales and EBITDA write-down and channel inventory adjustment could make 2027 a transition year, with a leaner cost structure, while 2028 could provide evidence that its new patented molecules are generating sales and EBITDA fast enough to offset the ongoing decline of its off-patent molecules. Morgan Stanley said its base case estimates are at the lower end of Q4 guidance and below the preliminary EBITDA ranges for both 2027 and 2028. Cash collection is expected to be a critical key performance indicator for the stock and its valuation, according to the note. Morgan Stanley kept an equal weight rating on FMC and lowered its price target to $8 from $12. Price: 6.48, Change: +0.28, Percent Change: +4.52