| Analyst Sees Bright Spot In Copper As Miners Dig Deeper In Hole | |
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Mining stocks are likely to dig deeper in the short-term but the copper segment should see a recovery strong recovery beginning in 2017, an analyst said Tuesday.
Jefferies Christopher LaFemina called Freeport-McMoRan Inc. (NYSE: FCX) "one of our top picks in the sector" and said copper is facing supply constraints that are likely to push up prices of the metal significantly.
The analyst also maintained Buy ratings on copper miners First Quantum Minerals Ltd. (TSE: FM), Antofagasta plc (LON:ANTO) and Glencore PLC (LON: GLEN).
But in the short-term, mining stocks across all segments will fall on further weakness in prices of iron ore and limited near-term gains for copper, other base metals, coal and gold, according to LaFemina.
Despite a Buy rating on Freeport, LaFemina cut his price target by 40 percent to $27 as the company experiences a tough year for operations.
The shares are off 40 percent in the past six months and Freeport looks likely to soon cut its dividend in the face of high debt and negative cash flow.
Copper prices will languish in a trough during the current year but gain 23 percent by 2017 to $3.25 a pound, according to LaFemina's estimate. The price for the metal should rise to $4 in 2018 as demand outstrips supply.
Given the bullish longer-term copper outlook, LaFemina called Freeport's current share price attractive with a major turnaround in prospect.
Latest Ratings for FCX
Date | Firm | Action | From | To |
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Mar 2015 | Jefferies | Maintains | | Buy | Feb 2015 | Deutsche Bank | Maintains | | Buy | Feb 2015 | Bank of America | Downgrades | Buy | Neutral |
View More Analyst Ratings for FCX
View the Latest Analyst Ratings
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First Quantum Minerals Ltd.
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PRODUCER |
CODE : FM.TO |
ISIN : CA3359341052 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
First Quantum is a copper producing company based in Canada. First Quantum produces copper, cobalt and gold in Congo Dem. Rep. of, in Mauritania and in Zambia, develops cobalt, copper and nickel in Congo Dem. Rep. of and in Zambia, and holds various exploration projects in Congo Dem. Rep. of and in Peru. Its main assets in production are BWANA MKUBWA, KANSANSHI and MOPANI in Zambia, FRONTIER and KOLWEZI in Congo Dem. Rep. of and GUELB MOGHREIN in Mauritania, its main assets in development are KOLWESI MUSONOI in Congo Dem. Rep. of and KALUMBILA in Zambia and its main exploration properties are KEVITSA and KEVISTA in Finland, HAQUIRA EAST and CRISTO DE LOS ANDES in Peru and KIPUSHI in Congo Dem. Rep. of. First Quantum is listed in Canada, in Germany, in United Kingdom and in United States of America. Its market capitalisation is CA$ 11.2 billions as of today (US$ 8.2 billions, € 7.6 billions). Its stock quote reached its lowest recent point on November 02, 2001 at CA$ 0.38, and its highest recent level on April 25, 2024 at CA$ 16.20. First Quantum has 689 369 984 shares outstanding. |