FMC Technologies (FTI) Stock Downgraded at Barclays
NEW YORK (TheStreet) -- Shares of FMC Technologies (FTI) - Get Report are down 2.49% to $26.62 Friday morning as Barclays downgraded the stock to "equal weight" from "overweight" and reduced its price target to $33 from $37.
"With the Technip merger representing a dramatic shift in strategy, we downgrade our rating to 'equal weight' on FMC Technologies as our investment thesis is in tatters," Barclays analysts said in an investor note.
The Philadelphia-based diversified chemical company announced its merger with French oil-services rival Technip SA (TECN) yesterday. The all-share deal will form a new company, TechnipFMC, marketed at $13 billion.
"With FMC now taking on E&C risk and seemingly abandoning its asset-light model, our investment thesis is no longer applicable and we downgrade our rating to Equal Weight with a $33 price target on a lower terminal multiple," Barclays stated.
Separately, TheStreet Ratings rated FMC Technologies as a "hold" with a score of C.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated.
At the same time, however, TheStreet Ratings also finds weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: FTI
