Deutsche Bank Downgrades Freeport-McMoRan (FCX) to Hold
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Rating Summary:
21 Buy, 11 Hold, 3 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Deutsche Bank downgraded Freeport-McMoRan (NYSE: FCX) from Buy to Hold with a price target of $12.50. The downgrade was tied to valuation.
Analyst Chris Terry said, "Freeport-McMoRan has announced that the previously disclosed (early May) $2.65bn cash sale of its 56% effective stake in Tenke Fungurume to China Molybdenum Co., Ltd. is now complete. There had been some initial delays/uncertainties with the transaction, so we view the announcement positively. In-line with our thesis, Freeport's balance sheet continues to transform. Including a further ~$2.5bn from O&G assets sales expected to close in the next month, we forecast $12.1bn Net Debt at YE16 (vs $17.9bn at 3Q16). Our $12.50/sh (1x NPV) is unchanged, however, we downgrade to Hold on valuation following the strong recent share price performance."
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 $13.80 yesterday.
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