Freeport-McMoRan (FCX – Research Report), a key player in the basic materials sector, received a fresh review from a prominent financial analyst. Carlos De Alba from Morgan Stanley decided to hold onto the stock with a set price target of $49.50.
Carlos De Alba advises holding Freeport-McMoRan’s shares due to various elements concerning the company’s operations and the steady regulatory atmosphere in Indonesia. Indonesia’s recent decision to grant FCX permission to keep exporting copper concentrate up until the year’s end, starting from June 1st, confirms Morgan Stanley’s predictions. This extension is vital for FCX, enabling the company to keep shipping copper concentrate despite Indonesia’s recent embargo on raw mineral exports that kicked off in June 2023.
Because this positive news was expected and factors into FCX’s alleged base case scenario, it doesn’t come as a surprise, nor does it justify altering the investor rating. Additionally, the anticipation that FCX will keep paying a 7.5% export duty on copper concentrate until 2024 indicates a predictable and moderate financial outlook for the company. The analyst’s choice to maintain a Hold rating echoes the current steady situation, which lacks strong indicators for either an improved or reduced stock rating at present.
De Alba, who concentrates on the Basic Materials sector and evaluates stocks such as Cleveland-Cliffs, Freeport-McMoRan, and United States Steel, boasts a respectable track record according to TipRanks, with an average return of 19.7% and a nearly 59% success rate on stock recommendations.
Following another analysis on May 29, RBC Capital concurred with the Hold rating and proposed a $60.00 price target for the stock.
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A Brief on Freeport-McMoRan (FCX):
With its inception in 1987 and Arizona as its home base, Freeport-McMoRan, Inc. stands as a leading mining firm with a focus on extracting copper, gold, and molybdenum. Its treasured assets include Indonesia’s Grasberg minerals district, famed for its vast copper and gold reserves, along with other significant mining sites across North and South America like Arizona’s Morenci minerals district and Peru’s Cerro Verde operation.
