Stifel initiates coverage on Freeport-McMoRan stock with Buy rating

Investing.com - Stifel initiated coverage on Freeport-McMoRan (NYSE:FCX) with a Buy rating and a price target of $56.00, highlighting the company’s position as the world’s third-largest copper producer. The stock, currently trading at $46.27, has shown strong momentum with a 19.5% gain year-to-date. According to InvestingPro data, FCX maintains a "GOOD" financial health score, with 11 additional key insights available to subscribers.

The research firm emphasized FCX’s leaching technology, which targets a run-rate of 300 million pounds per year by year-end 2025 and 800 million pounds per year by 2030, equivalent to a Tier One copper asset.

Stifel noted that Freeport-McMoRan’s growth strategy includes doubling concentrator capacity at Bagdad with an investment decision expected in Q4/25, leach expansion at Lone Star, and El Abra expansion, collectively targeting 30% growth through low-risk, high-IRR projects.

The firm also pointed to FCX’s strong financial position with total liquidity of $7.4 billion, including $4.4 billion in cash and $3.0 billion in revolving credit facility, positioning the company to manage discretionary capital and shareholder returns effectively.

Stifel’s price target is based on a blended weighting of 1.40x P/NAV and 8.0x FY26E/27E EV/EBITDA estimates, with Freeport currently trading at 1.22x P/NAV and 6.9x FY26 EV/EBITDA, which Stifel considers a warranted premium versus its peer group of senior diversified metals producers.

In other recent news, Freeport-McMoRan has seen several updates regarding its stock price targets from various analyst firms. CFRA raised its price target for the company to $57, citing Freeport-McMoRan’s strategic position in the global energy transition and infrastructure development. They highlighted the company’s potential to benefit from increased copper demand driven by electric vehicles and renewable energy infrastructure. Meanwhile, Citi increased its price target to $48, anticipating benefits from potential Section 232 tariffs on copper imports, which could position Freeport-McMoRan as a significant winner among its peers. Raymond (NSE:RYMD) James also adjusted its price target to $53, maintaining an Outperform rating due to the company’s robust portfolio of copper and gold assets. Additionally, Freeport-McMoRan shareholders approved a new 2025 Stock Incentive Plan, authorizing the issuance of up to 43,820,000 shares. This plan aims to provide flexibility in granting various types of awards to eligible participants. The developments reflect ongoing strategic and financial adjustments as the company navigates the evolving market landscape.

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