Berenberg Downgrades Freeport-McMoRan (FCX) to Sell; Risks Skewed to the Downside
Get Alerts FCX Hot Sheet
Rating Summary:
21 Buy, 11 Hold, 3 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Join SI Premium – FREE
Berenberg downgraded Freeport-McMoRan (NYSE: FCX) from Hold to Sell with a price target of $10.90, saying risk is skewed to the downside.
Analyst Fawzi Hanano commented, "We believe near-term risks are skewed to the downside, relating to Grasberg’s production and our expectations of a correction in the copper price from current levels. We also expect investors to start looking past a 2017E earnings peak to a more sustainable level in later years and to value the company on that basis. The stock’s 7.7x 12M forward EV/EBITDA is already rich, in our opinion, and we see this moving towards 10x in 2018E. We raise our price target to USD10.90, reflecting our revised commodity price estimates. However, we downgrade our rating to Sell, as our price target implies 32% downside."
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 $14.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wolfe Research Downgrades Warner Brothers Discovery (WBD) to Underperform, 'out of concern that an incipient advertising downturn put guidance at risk'
- Spotify (SPOT) PT Raised to $396 at Rosenblatt
- Fiserv (FI) PT Raised to $175 at TD Cowen
Create E-mail Alert Related Categories
Analyst Comments, Downgrades, Hot DowngradesRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!