tunart/E+ via Getty Images
Freeport McMoRan (NYSE:FCX) +1.1% in Wednesday’s trading, recouping a slice of the previous session’s sharp loss, as UBS upgrades shares to Buy from Neutral with a $55 price target.
Freeport McMoRan (FCX) is the most liquid global copper pure play stock investment with high correlation to copper price upside, and UBS analyst Daniel Major sees the medium-term fundamental outlook for copper as “compelling” and positioning is “cleaner” following Q3’s price consolidation.
Major believes the bottom-up investment case for Freeport (FCX) is largely de-risked following the completion of the smelter and expected extension of the license at the Grasberg mine in Indonesia, and he forecasts modest volume growth driven by recovery/sulfide leaching in North America and upside to cash returns, with buybacks restarted in Q3.
The analyst acknowledges near-term risks from consensus downgrades, but sees current levels as an attractive medium-term entry point with Freeport (FCX) pricing in ~$4.25/lb copper vs. UBS’ 2025 estimate of $4.75/lb.
Source link
