Freeport-McMoRan, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Daniel Major from UBS maintained a Buy rating on the stock and has a $55.00 price target.
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Daniel Major has given his Buy rating due to a combination of factors surrounding Freeport-McMoRan’s strategic initiatives and future outlook. The company has announced plans to restore large-scale operations at the Grasberg Block Cave, with a ramp-up of underground mining expected by the second quarter of 2026. Although the production guidance for 2026/27 is slightly lower than initial estimates, Freeport-McMoRan anticipates returning to normalized production levels by 2028, which is a positive indicator for future performance.
Furthermore, the company’s proactive measures in addressing the conditions that led to previous incidents, such as leveraging internal and external expertise to identify root causes and implementing risk management strategies, demonstrate a commitment to operational improvement. The support from the Indonesian government for extending operations beyond 2041 also adds a layer of confidence. If Freeport-McMoRan successfully delivers on its outlined plans, the stock is expected to outperform its copper industry peers, justifying the Buy rating.
Major covers the Basic Materials sector, focusing on stocks such as Freeport-McMoRan, Agnico Eagle, and Franco-Nevada. According to TipRanks, Major has an average return of 18.7% and a 65.68% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $46.00 price target.