Freeport-McMoRan (FCX) the 'Go-To' Copper Play Again, PT to $20 - Cowen
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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 10¢/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."
Shares of Freeport-McMoRan closed at $13.73 yesterday.
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