| Morgan Stanley Upgrades Freeport-McMoRan, Says 'Tide Is Turning' | |
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In a report published Tuesday, analysts at Morgan Stanley upgraded Freeport-McMoRan Inc (NYSE: FCX) to Overweight. The price target has been raised to $29. The company's financial are improving.
Freeport-McMoRan's FCF has reached an "inflection point," driven by growing volumes and declining capex/opex costs. While improving FCF usually leads to a downgrade, the analysts have upgraded the stock, saying that the Indonesian overhang is largely priced in.
Morgan Stanley expects the increase in production at the company's copper mines to drive further increase in volumes and decline in cash costs, with a 14 percent year-on-year decline in total capex likely in 2016.
According to the analysts, "Even if copper prices collapse to near marginal cost, we don't think the company will burn cash in 2016-17. Thus, 2015 is the only "bridge year" when the company burns cash, which leaves us less concerned about financing needs to achieve growth targets."
In addition, the company intends to sell public equity in its energy business, which the analysts believe would unlock incremental value, while providing the needed funds to drive oil & gas volume growth.
"Recent news flow indicates the govt. wants to conclude negotiations soon and is open to extending FCX's contract beyond 2021, which should be a positive catalyst," the analysts added.
Latest Ratings for FCX
Date | Firm | Action | From | To |
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Apr 2015 | Morgan Stanley | Upgrades | | Overweight | Apr 2015 | Citigroup | Maintains | | Buy | Apr 2015 | Citigroup | Maintains | | Buy |
View More Analyst Ratings for FCX
View the Latest Analyst Ratings
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Freeport McMoRan Copper and Gold Inc.
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is US$ 69.9 billions as of today (€ 65.2 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 48.24. Freeport McMoran has 1 448 000 000 shares outstanding. |