Freeport-McMoRan: Buy Rating Amid Copper Price Recoupling and Long-Term Growth Potential

Jefferies analyst Chris LaFemina reiterated a Buy rating on Freeport-McMoRan (FCX – Research Report) yesterday and set a price target of $50.00.

Chris LaFemina has given his Buy rating due to a combination of factors, primarily focusing on the relationship between Freeport-McMoRan’s stock price and the price of copper. Historically, Freeport’s stock has been closely tied to copper prices, but this correlation broke down recently, leading to a situation where the stock was undervalued. However, a partial recoupling has occurred, with Freeport’s stock price rallying in line with rising copper prices, suggesting further upside potential.
LaFemina notes that while there is room for further multiple expansion, the investment case for Freeport is now more reliant on the potential increase in copper prices. Despite anticipated short-term volatility due to potential demand fluctuations, the long-term outlook for copper remains positive, which bodes well for Freeport’s stock. This positive trajectory in copper prices, combined with the stock’s partial recoupling with copper, underpins the Buy rating.

In another report released on June 3, Morgan Stanley also maintained a Buy rating on the stock with a $45.00 price target.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FCX in relation to earlier this year.