Goldman Sachs Lowers EPS Estimates on Freeport-McMoRan (FCX)

June 25, 2013 5:41 PM EDT
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Price: $15.70 +1.23%

Rating Summary:
    12 Buy, 15 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 11
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Goldman Sachs today maintained a Buy rating on Freeport-McMoRan (NYSE: FCX) and lowered its price target to $35.00 (from $38.00). Analysts trimmed 2013/2014 EPS estimates to $2.49/$3.35 from $3.45/$3.80. The change reflects lower copper and gold price forecasts. Q213 EPS was trimmed to $0.33 down from $0.55.

"Despite lower commodity price forecast by our Commodity Research team, we estimate FCX to generate around $11bn of EBITDA for each of the next two years, although lower free cash flow would delay deleveraging of balance sheet beyond 3 years," said analyst Sal Tharani.

"If commodity prices were to disappoint further, we believe that FCX has levers available to pull in its capex budget and protect the balance sheet. In the near term, Grasberg start-up and renewal of labor contract will be an overhang, but we consider these as transitory issues and see current levels as a good entry point," he added.

For an analyst ratings summary and ratings history on Freeport-McMoRan (NYSE: FCX) click here. For more ratings news on Freeport-McMoRan click here.

Shares of Freeport-McMoRan closed at $26.82 yesterday.

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