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Investing.com - Freedom Capital Markets downgraded Freeport-McMoRan (NYSE:FCX) from Buy to Hold and lowered its price target to $47.00 from $55.00 on Thursday. The stock, currently trading at $42.74 with a market capitalization of $61.35 billion, has shown significant momentum with a 10.24% gain over the past week.
The downgrade follows Freeport-McMoRan’s announcement that it expects approximately 35% lower copper output at its Grasberg site in 2026 compared to previous estimates, following a recent fatal accident at the location.
The mining company had previously guided for approximately 770 kilotonnes of copper production at Grasberg in 2026, according to Freedom Capital Markets.
The 35% production decline at Grasberg implies an additional 1% deficit to the overall market balance in 2026, the research firm noted in its analysis.
Freedom Capital Markets cited these updated forecasts as the primary reason for both the rating downgrade and the $8 reduction in price target for the copper mining company.
In other recent news, Freeport-McMoRan has been at the center of several significant developments. UBS upgraded the company’s stock rating to Buy, citing a positive recovery outlook for the Grasberg mine in Indonesia. Meanwhile, RBC Capital adjusted its price target for Freeport-McMoRan to $48, maintaining a Sector Perform rating, following updated guidance from the company. Raymond James also revised its price target to $46, while keeping an Outperform rating, based on Freeport’s extensive copper and gold assets.
Additionally, Freeport-McMoRan agreed to divest a 12% stake in its Indonesian unit to the government at no cost, as reported by CNBC. This move involves the local entity, Freeport Indonesia, which is majority-owned by MIND ID, part of Indonesia’s wealth fund. In a separate development, Bank of America downgraded Freeport’s bonds to Underweight due to a serious incident at the Grasberg mine, which resulted in two fatalities and five missing individuals. An investigation into the incident is underway and expected to conclude by the end of 2025.
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