Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Morgan Stanley (NYSE:MS) upgraded Freeport-McMoRan (NYSE:FCX) from Equalweight to Overweight on Monday, while simultaneously lowering its price target to $48.00 from $54.00. The mining giant, currently trading at $41.87 with a market cap of $60.1 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.
The investment bank believes the recent price reaction in Freeport-McMoRan shares has been excessive, despite adjusting estimates to account for U.S. Section 232 tariffs not extending to copper cathodes. With a current analyst consensus rating of 2.15 and trading near InvestingPro’s Fair Value estimate, the stock shows balanced potential.
Morgan Stanley notes that Freeport-McMoRan will still benefit from 50% tariffs on a majority of its U.S. volumes, providing significant support for the company’s operations.
The firm also highlights that Freeport-McMoRan continues to benefit from elevated gold prices, which are helping to reduce the company’s unit net cash costs and improve overall profitability.
Morgan Stanley’s new price target of $48 per share represents approximately 20% upside potential from current levels, with the target based on mid-2026 projections.
In other recent news, Freeport-McMoRan reported impressive financial results for the second quarter of 2025, surpassing analyst forecasts. The company achieved earnings per share of $0.54, which was a 20% surprise over the expected $0.45. Revenue also exceeded projections, reaching $7.58 billion compared to the anticipated $7.19 billion. Despite these strong results, the company faced challenges as President Donald Trump imposed a 50% tariff on copper imports, affecting products like pipes, wires, and electrical components. This development was part of a national security strategy and is set to take effect on August 1. Additionally, BMO Capital lowered its price target for Freeport-McMoRan to $54 from $55, following a reduction in the company’s 2025 gold production target. Nonetheless, BMO maintained an Outperform rating on the stock. Raymond (NSE:RYMD) James also reiterated its Outperform rating, citing Freeport-McMoRan’s extensive portfolio of copper and gold assets. These developments highlight ongoing shifts in the company’s operating environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.