In a report released today, Carlos De Alba from Morgan Stanley maintained a Buy rating on Freeport-McMoRan, with a price target of $48.00.
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Carlos De Alba has given his Buy rating due to a combination of factors that suggest Freeport-McMoRan is well-positioned for growth. He believes the recent sell-off in FCX shares was excessive, particularly following the Section 232 tariff announcement, and that the company stands to benefit from these tariffs, as a significant portion of its North American sales are in copper rod. This tariff protection is expected to allow FCX to increase pricing on its negotiated annual contracts, which is not yet reflected in the current share price.
Furthermore, De Alba sees a promising operational outlook for Freeport-McMoRan, with the company maintaining a clean operational record despite disruptions in other copper mining operations. The company’s exposure to gold and its strategy of returning value to shareholders through share buybacks further bolster its investment appeal. Additionally, the potential for copper rod customers to pass on price increases, supported by tariff protections, strengthens the case for the company’s ability to achieve premium pricing in the North American market.
In another report released on August 3, Bank of America Securities also reiterated a Buy rating on the stock with a $49.00 price target.