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Investing.com - Morgan Stanley (NYSE:MS) downgraded Freeport-McMoRan (NYSE:FCX) from Overweight to Equalweight on Tuesday, while raising its price target to $54.00 from $45.00. The stock, currently trading at $45.63, has shown strong momentum with a 20.8% year-to-date return, according to InvestingPro data.
The investment bank cited limited upside to its price target and few clear catalysts in the near term as key reasons for the downgrade, despite maintaining some positive outlook on the stock. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts maintaining a consensus recommendation of 2.15 (moderate buy).
Morgan Stanley noted that Freeport-McMoRan is positioned to benefit from COMEX copper exposure, as tariffs on copper imports into the United States are expected to result in higher COMEX copper prices relative to the London Metal Exchange.
The firm also highlighted the mining company’s strong gold outlook as a positive factor, but ultimately concluded that the stock’s risk-reward profile has become less compelling.
At 5.1x and 12.3x on Morgan Stanley’s 2026 EBITDA and EPS estimates respectively, Freeport-McMoRan currently trades below its 5-year average EV/EBITDA multiple of 6.7x and P/E multiple of 18.2x.
In other recent news, Freeport-McMoRan has garnered attention from several research firms, reflecting a mix of optimism and caution. Stifel initiated coverage on the company with a Buy rating and a price target of $56, citing its strong financial position and growth strategy. Meanwhile, Citi raised its price target to $48, maintaining a Neutral rating, and highlighted potential benefits from expected Section 232 tariffs on copper imports. CFRA also increased its price target to $57, maintaining a Strong Buy rating, and emphasized Freeport-McMoRan’s role in the global energy transition and infrastructure development. Additionally, Raymond (NSE:RYMD) James adjusted its price target to $53, maintaining an Outperform rating and noting the company’s large, low-cost copper assets. These developments underscore the company’s strategic positioning in the copper market, as well as potential challenges related to jurisdictional risks in Indonesia. Freeport-McMoRan’s balance sheet strength and expansion plans remain focal points in these analyses. Overall, the company continues to be viewed favorably by analysts, with varying degrees of enthusiasm.
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