Freeport-McMoRan, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Alexander Hacking from Citi maintained a Hold rating on the stock and has a $48.00 price target.
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Alexander Hacking has given his Hold rating due to a combination of factors influencing Freeport-McMoRan’s current and future performance. The company’s second-quarter EBITDA is projected to rise, driven by favorable copper prices, yet the overall market conditions for copper remain uncertain. The anticipated post-Section 232 de-stocking in the U.S. could lead to a temporary dip in copper prices, although a recovery is expected in the longer term.
Despite Freeport-McMoRan’s strong position, particularly with its significant gold exposure, the company’s performance has been in line with its peers. The resumption of operations at the Indonesia smelter and the resolution of mining tax issues provide stability, but investors remain cautious about potential changes in a market affected by Section 232. The target price has been adjusted upwards, reflecting a moderate expected return, which supports the Hold rating.
According to TipRanks, Hacking is a 5-star analyst with an average return of 14.9% and a 60.23% success rate. Hacking covers the Basic Materials sector, focusing on stocks such as Freeport-McMoRan, Alcoa, and Cleveland-Cliffs.
In another report released on July 2, RBC Capital also maintained a Hold rating on the stock with a $54.00 price target.