Jefferies Maintains 'Top Pick' Status on Freeport-McMoRan (FCX); Current Valuation Reflects Weakness in Copper
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Price: $29.52 -0.47%
Rating Summary:
18 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
18 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade FCX Now!
Jefferies maintains a 'Buy' on Freeport-McMoRan (NYSE: FCX) price target of $60.00.
Analyst, Peter Ward, said, "Fears of global economic weakness, substantial speculative selling and the strong U.S. dollar materially weakened the copper price in the second quarter. Nonetheless, FCX remains our top pick in North American Metals and Mining. In our opinion, the current valuation fully discounts further material weakness in copper."
Ward remains a long-term Copper bull, saying that over the next decade, the scarcity of new copper supply may surprise many. He continues to sees FCX as a favorite risk/reward idea, citing cash on balance sheet, 3.5% yield and shares trading at a trough P/E Multiple. On a relative basis, he lowers FY12 EPS estimate from $4.30 to $3.55 and FY13 from $6.80 to $5.40.
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 $35.31 yesterday, with a 52 week range of $28.85-$56.78.
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Analyst, Peter Ward, said, "Fears of global economic weakness, substantial speculative selling and the strong U.S. dollar materially weakened the copper price in the second quarter. Nonetheless, FCX remains our top pick in North American Metals and Mining. In our opinion, the current valuation fully discounts further material weakness in copper."
Ward remains a long-term Copper bull, saying that over the next decade, the scarcity of new copper supply may surprise many. He continues to sees FCX as a favorite risk/reward idea, citing cash on balance sheet, 3.5% yield and shares trading at a trough P/E Multiple. On a relative basis, he lowers FY12 EPS estimate from $4.30 to $3.55 and FY13 from $6.80 to $5.40.
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 $35.31 yesterday, with a 52 week range of $28.85-$56.78.
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