Goldman Sachs Bumps Price Target on Freeport-McMoRan (FCX), Says Co. Being Conservative on Production

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Goldman Sachs raised its price target on Buy-rated Freeport-McMoRan (NYSE: FCX) from $46 to $50 following yesterday's results.

The firm adjusting estimates to account for the company’s production/ costs guidance and raised their copper forecast to $3.80/lb from $3.60/lb. The firm's 2012 copper production forecast was cut to 3.9bn lb from 4.0bn lb, but is still above the updated guidance of 3.8bn lbs, as they believe the company is being conservative.

"The company’s 2012 production guidance was modestly disappointing but we are still very bullish on copper market fundamentals and believe the company is being conservative in its guidance. The copper market remains tight and the company will continue to generate significant cash throughout the year."

Goldman sees a special dividend as early as the second quarter of this year and they expect the company to raise production forecasts for 2012 in coming quarters.

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 $44.37 yesterday, with a 52 week range of $28.85-$119.67.

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