UBS last night upgraded Freeport-McMoRan (FCX) to Buy from Neutral with a price target of $48, up from $42.50. The shares are over-discounting the company’s Grasberg challenges, the analyst tells investors in a research note. UBS attributes Freeport’s recent share underperformance to concerns that it will take longer for Grasberg to return to pre-incident levels relative to guidance and risk of impairment to the mine’s long-term profile. The firm believes the market is pricing in an “overly pessimistic” outcome for Grasberg recover.
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