Katja Jancic, an analyst from BMO Capital, maintained the Buy rating on Freeport-McMoRan. The associated price target was lowered to $47.00.
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Katja Jancic’s rating is based on a combination of factors, primarily focusing on the recent developments at the Grasberg mine. Despite the challenges faced due to the unexpected mud rush incident, Freeport-McMoRan has outlined comprehensive mitigation strategies, which are expected to significantly lower the risk of similar occurrences in the future. The company’s proactive approach in exploring new technologies to enhance cave monitoring and material flow understanding further supports a positive outlook.
Moreover, while the updated production forecast is slightly lower than anticipated, the current valuation of FCX shares remains attractive. Trading at approximately 5.0 times the 2027 EBITDA estimate, the stock offers a compelling opportunity for investors seeking exposure to copper, a commodity with a promising supply-demand dynamic. Although some uncertainties remain regarding the restart timeline, the phased approach and potential for operational optimization provide confidence in Freeport-McMoRan’s ability to navigate these challenges effectively.
In another report released today, UBS also maintained a Buy rating on the stock with a $55.00 price target.