Berenberg Downgrades Freeport-McMoRan (FCX) to Sell; Risks Skewed to the Downside
- Dollar lower, stocks flat as caution creeps in ahead of Trump inauguration
- General Electric (GE) Reports In-Line Q4 EPS
- Procter & Gamble (PG) Tops Q2 EPS by 2c
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Berenberg downgraded Freeport-McMoRan (NYSE: FCX) from Hold to Sell with a price target of $10.90, saying risk is skewed to the downside.
Analyst Fawzi Hanano commented, "We believe near-term risks are skewed to the downside, relating to Grasberg’s production and our expectations of a correction in the copper price from current levels. We also expect investors to start looking past a 2017E earnings peak to a more sustainable level in later years and to value the company on that basis. The stock’s 7.7x 12M forward EV/EBITDA is already rich, in our opinion, and we see this moving towards 10x in 2018E. We raise our price target to USD10.90, reflecting our revised commodity price estimates. However, we downgrade our rating to Sell, as our price target implies 32% downside."
Shares of Freeport-McMoRan closed at $14.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Starts Essent Group (ESNT) at Buy
- Deutsche Bank Downgrades TCF Financial (TCB) to Hold
- Checkpoint Software (CHKP) PT Raised to $105 at Instinet
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!