Morgan Stanley analyst Carlos De Alba maintained a Buy rating on Freeport-McMoRan (FCX – Research Report) today and set a price target of $44.00.
Carlos De Alba has given his Buy rating due to a combination of factors surrounding potential tariffs on copper imports into the United States. The U.S. is a net importer of copper, and any tariffs could lead to higher domestic prices, benefiting companies like Freeport-McMoRan that have significant operations within the country. With approximately 35% of its 2025 copper sales expected to come from U.S. operations linked to COMEX contracts, Freeport-McMoRan is well-positioned to capitalize on these potential price increases.
Furthermore, the investigation into copper tariffs is expected to be completed quickly, and the preference for tariffs over quotas could further enhance domestic copper prices. Freeport-McMoRan’s North American business, which accounted for a significant portion of its consolidated volumes, would likely benefit from the premium in COMEX prices over LME prices. This strategic positioning and the expected increase in copper prices due to potential tariffs underpin Carlos De Alba’s Buy rating for Freeport-McMoRan’s stock.
De Alba covers the Basic Materials sector, focusing on stocks such as Teck Resources, Freeport-McMoRan, and Alcoa. According to TipRanks, De Alba has an average return of 12.5% and a 48.97% success rate on recommended stocks.