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Deutsche Bank Downgrades Freeport-McMoran (FCX) to Sell

March 31, 2009 7:34 AM EDT
FCX Hot Sheet
Rating Summary:
    16 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank downgrades Freeport-McMoran (NYSE: FCX) to Sell, saying recent price rallies are seemingly disconnected from underlying operating fundamentals. The firm also believe copper prices are due for a correction.

Deutsche analyst says, "Unfortunately, the bulk of our space seems to be in "no man's land" with recent price rallies seemingly disconnected from underlying operating fundamentals of low capacity utilization (copper-based stocks are the exception, but we believe copper prices are due for a correction). We therefore maintain four Sell ratings, which are becoming somewhat more opportunistic and less "structural" (i.e., the FCX downgrade is based on a recent price spike and not a financial overhang issue). Still, we do not have conviction that shares have touched bottom given our bleak view of the industrial landscape, which points to a long and protracted bounce along the bottom, as opposed to a V-shaped recovery that would bring the sector back to reasonable profitability before 2011."

To see more analyst ratings on FCX Click Here.

Freeport-McMoran Copper & Gold Inc. (FCX), through its wholly owned subsidiary, Phelps Dodge Corporation (Phelps Dodge) is a copper, gold and molybdenum mining company.

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