In a report released yesterday, Katja Jancic from BMO Capital maintained a Buy rating on Freeport-McMoRan (FCX – Research Report), with a price target of $46.00.
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Katja Jancic’s rating is based on Freeport-McMoRan’s strong quarterly performance and strategic positioning. The company has maintained its sales and capital expenditure targets, and its project pipeline remains robust. Additionally, repairs on the Indonesian smelter are progressing faster than anticipated, and the current export license is expected to meet 2025 requirements.
Freeport’s U.S. operations stand to gain from potential copper tariffs and other favorable U.S. policies, enhancing their profitability. The company’s shares are trading at a discount compared to peers, suggesting that the market has not fully recognized these advantages. Furthermore, Freeport’s vertically integrated operations and potential benefits from a critical mineral designation and production tax credits could significantly boost cash flow and EBITDA. These factors, combined with a focus on cost reduction and increased production, underpin the Buy rating.
In another report released on April 16, Wolfe Research also upgraded the stock to a Buy with a $39.00 price target.
FCX’s price has also changed moderately for the past six months – from $46.840 to $37.630, which is a -19.66% drop .