Analyst Carlos De Alba from Morgan Stanley maintained a Buy rating on Freeport-McMoRan and keeping the price target at $48.00.
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Carlos De Alba has given his Buy rating due to a combination of factors that highlight Freeport-McMoRan’s potential despite recent challenges. The company experienced a significant incident at its Grasberg Block Cave underground mine, which has temporarily halted operations. While this disruption could affect Freeport’s copper production targets, particularly given Grasberg’s contribution to their output, the mine’s low-cost operations and gold by-products provide a strong financial cushion.
De Alba acknowledges the uncertainty surrounding the situation but emphasizes the long-term value of Freeport-McMoRan’s assets. The company’s market position and potential for recovery post-incident are key considerations in maintaining a positive outlook. Investors are advised to weigh these factors, understanding that while short-term disruptions may occur, the underlying fundamentals of Freeport-McMoRan remain robust.
In another report released on September 7, Jefferies also reiterated a Buy rating on the stock with a $48.00 price target.