Xia Yu, director at Summit Therapeutics, buys $9.9 million in shares
Investing.com - Jefferies has lowered its price target on Freeport-McMoRan (NYSE:FCX) stock to $46.00 from $48.00 while maintaining a Buy rating, citing recent guidance revisions from the copper producer. The mining giant, with a market capitalization of $57.6 billion and annual revenue of $25.8 billion, currently trades at $40.01 per share. According to InvestingPro data, the company maintains a strong financial health score of "GOOD."
The firm reduced its consolidated 2026 EBITDA forecast for Freeport by 26% and its attributable 2026 EBITDA forecast by 23% following the company’s updated guidance. While the company’s current EBITDA stands at $9.62 billion, Jefferies noted that some of this downside was likely already reflected in FCX’s share price as the market had anticipated a significant guidance downgrade. InvestingPro analysis shows the stock trading at a high earnings multiple, with broader analyst targets ranging from $27 to $57 per share.
Despite the reduction, Jefferies recommended buying FCX shares on weakness, suggesting the disruption at Freeport’s operations could lead to a tighter copper market and higher copper prices, which would benefit the company’s operations in the Americas. Want deeper insights? InvestingPro subscribers get access to 10 additional exclusive ProTips and comprehensive financial analysis for FCX, including detailed valuation metrics and peer comparisons.
The price target adjustment comes amid a series of significant downgrades to expected copper production across the industry, including at Grasberg, Codelco, Hudbay, and Ivanhoe operations, making it "very difficult to be bearish" on copper prices according to Jefferies.
The firm identified Glencore, Lundin Mining, and First Quantum as "clear beneficiaries" of the tightening copper market, while also noting that Anglo American, Antofagasta, and Teck Resources should "significantly benefit" from the industry dynamics.
In other recent news, Freeport-McMoRan has announced significant production impacts following a deadly mud rush incident at its Grasberg Block Cave mine in Indonesia. The suspension of operations at this major copper and gold mine is expected to reduce the company’s third-quarter consolidated sales by approximately 4% for copper and 6% for gold compared to earlier estimates. BMO Capital responded to the incident by lowering its price target for Freeport-McMoRan to $48.00 from $54.00, although it maintained an Outperform rating. RBC Capital also maintained its Sector Perform rating and a $54.00 price target despite the reduced Q3 sales guidance due to the mine’s production issues.
The Grasberg mine, which contributes significantly to Freeport-McMoRan’s net asset value, is not expected to fully recover until 2027, according to RBC’s preliminary assessments. Meanwhile, Freeport-McMoRan has declared a $0.15 per share dividend for November, consisting of a base payment and a variable component. This decision aligns with the company’s performance-based payout framework. The Board of Directors will continue to evaluate dividend payments based on financial results, cash requirements, and global economic conditions.
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