Freeport-McMoRan (FCX) the 'Go-To' Copper Play Again, PT to $20 - Cowen

November 21, 2016 9:42 AM EST
Get Alerts FCX Hot Sheet
Price: $15.51 +1.64%

Rating Summary:
    12 Buy, 15 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Cowen analyst Anthony Rizzuto reiterated an Outperform rating and raised his price target on Freeport-McMoRan (NYSE: FCX) to $20.00 (from $15.00) as the stock has regained its status as the go-to copper investment vehicle after the impressive actions taken by management to right-size the balance sheet, in their view.

"FCX shares could re-rate higher as the implied copper price in shares is well below current spot prices," he said.

Rizzuto notes FCX maintains significant leverage to improving copper prices, in spite of recent copper asset divestitures. "Every 10ยข/lb move in copper prices results in an estimated $410MM change in 2017 EBITDA," he notes. "Copper prices have been volatile in recent weeks, but appear to have settled close to $2.50/lb from under $2.10 just a few weeks ago."

For an analyst ratings summary and ratings history on Freeport-McMoRan click here. For more ratings news on Freeport-McMoRan click here.

Shares of Freeport-McMoRan closed at $13.73 yesterday.

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