The downgrade comes as Credit Suisse feels the company is facing inventory risks in the Americas.
Credit Suisse believes the company's long-term story remains underappreciated, but the firm is uncomfortable with the risks FMC is facings in the U.S. and Latin America.
"We believe bloated channel inventories in the Americas will ultimately take time to draw down, particularly given lower insect pressure in Brazil and difficult conditions in SE Asia," the firm said in a note.
"While we acknowledge the "set up" for insecticide demand remains strong in the U.S. and Europe, given a ~28% rally in the past ~10 weeks, we view that opportunity is fully baked in, with the risk now shifting to the downside," Credit Suisse continued.
FMC is a diversified chemical company that serves agricultural, consumer and industrial markets with solutions, applications and products across the globe.
Separately, TheStreet Ratings has set a "hold" rating and a score of C- on FMC Corp. The primary factors that have impacted the 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.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow.
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.
You can view the full analysis from the report here: FMC