Freeport-McMoRan stock maintains Buy rating at BofA on strong earnings

Published 23/07/2025, 16:12
Freeport-McMoRan stock maintains Buy rating at BofA on strong earnings

Investing.com - BofA Securities has reiterated its Buy rating and $50.00 price target on Freeport-McMoRan (NYSE:FCX), currently trading at $45.09, following the mining company’s second-quarter 2025 earnings report. InvestingPro data shows the company maintains a GOOD financial health score, with strong liquidity and moderate debt levels.

The company reported adjusted EBITDA for Q2 2025 that significantly exceeded both BofA Securities and consensus forecasts, with the outperformance attributed to higher sales volumes, lower production costs, and improved pricing. The company’s revenue has grown 4.52% over the last twelve months, reaching $24.86 billion.

Copper production from leaching operations reached 52 million pounds in the second quarter, compared to 46 million pounds in Q1 2025 and 50 million pounds in Q4 2024, with the company targeting a 300 million pound annual run-rate by year-end 2025.

While Freeport-McMoRan reduced its sales guidance for 2025 and slightly increased its unit cost projections, BofA Securities noted that the company’s long-term outlook remains broadly intact, with the new Indonesian smelter starting operations in Q2 2025 as planned.

The mining company repurchased $52 million of its shares during the second quarter, down from $80 million in the first quarter of 2025, as it continues to return value to shareholders amid what BofA describes as a bullish longer-term outlook for copper prices. According to InvestingPro, the stock is trading near its Fair Value, with 12 additional exclusive insights available for subscribers seeking deeper analysis of this prominent metals and mining player.

In other recent news, Freeport-McMoRan reported strong second-quarter 2025 financial results, with revenues of $7,582 million surpassing the Visible Alpha consensus estimate of $7,152 million. The company’s adjusted EBITDA of $3,191 million exceeded forecasts, and adjusted earnings per share were $0.53, above the expected $0.45. Despite these positive results, Morgan Stanley (NYSE:MS) downgraded Freeport-McMoRan from Overweight to Equalweight, raising the price target to $54.00 due to limited upside and few near-term catalysts. Meanwhile, Stifel initiated coverage with a Buy rating and a price target of $56.00, citing the company’s significant copper production capabilities. Citi raised its price target to $48.00, reflecting potential benefits from anticipated Section 232 tariffs on copper imports. CFRA also increased its price target to $57.00, maintaining a Strong Buy rating and adjusting its earnings estimates upwards for 2025 and 2026. These developments highlight diverse analyst perspectives on Freeport-McMoRan’s future prospects.

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