| 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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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière de cuivre et d'or basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice de cuivre, d'or, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 2,1 milliards (1,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 , et son plus haut niveau récent le 18 septembre 2024 à 43,92 . Freeport McMoran possède 47 442 200 actions en circulation. |