Freeport-McMoRan downgraded to Neutral at BofA on Grasberg overhang

BofA downgraded Freeport-McMoRan (FCX) to Neutral from Buy with a price target of $42, down from $50, after the company provided an update on the previously reported mud rush incident at the Grasberg mine in Indonesia on September 8. Freeport is instituting a force majeure and Grasberg production guidance for Q3, Q4 and 2026 are being reduced materially, noted the analyst, who sees the operational challenges at Grasberg as “an overhang to at least early 2026.”