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Investing.com - Citi raised its price target on Freeport-McMoRan (NYSE:FCX) to $48.00 from $44.00 on Tuesday while maintaining a Neutral rating on the stock. The mining giant, currently trading at $45.13 with a market capitalization of $64.8 billion, is trading close to its InvestingPro Fair Value.
The price target increase reflects potential benefits for the copper producer from expected Section 232 tariffs on copper imports, which are anticipated to be announced within the next 90 days.
Citi’s base case scenario anticipates a 25% tariff on copper imports, compared to the current 50% tariffs on steel and aluminum imports.
The research firm identified Freeport-McMoRan as "the only real winner" among copper companies in its coverage universe due to the company’s extensive operations in the United States.
Citi expects Freeport-McMoRan stock to outperform its peers after the implementation of the Section 232 measures, which face a 270-day deadline in late November.
In other recent news, Freeport-McMoRan’s earnings outlook has been positively adjusted by CFRA, which raised its price target for the company to $57 from $48, maintaining a Strong Buy rating. The research firm cited Freeport-McMoRan’s central role in the global energy transition and infrastructure development as key drivers for increased earnings estimates through 2026. Additionally, Raymond (NSE:RYMD) James adjusted its price target for the company to $53 from $52, maintaining an Outperform rating, while highlighting the company’s substantial copper and gold assets. Shareholders of Freeport-McMoRan recently approved a new 2025 Stock Incentive Plan, which will authorize the issuance of up to 43,820,000 shares and replace the expiring 2016 plan. This development was part of several resolutions passed at the company’s annual meeting, which included the election of twelve directors and the ratification of Ernst & Young LLP as the independent auditor for 2025.
Furthermore, Freeport-McMoRan’s CEO, Kathleen Quirk, has raised concerns about the potential impact of broader tariffs on the U.S. copper industry, despite current benefits from higher domestic copper prices. She noted that while tariffs could support domestic copper pricing, they might also disrupt global growth and demand. Quirk emphasized the need for additional incentives to boost domestic copper production, aligning with the company’s advocacy for tax credits similar to those available to lithium and nickel miners. These recent developments underscore Freeport-McMoRan’s strategic positioning in the copper market and the ongoing challenges and opportunities it faces in the global economic landscape.
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