Soleil Slashes Estimates on Freeport (FCX); Maintains Buy

Soleil Securities lowers its estimates on Freeport-McMoRan Copper & Gold (NYSE: FCX), while maintaining its Buy rating and $135 price target.

The firm cites yesterday's report of an accident at Freeport's Grasberg mine located in Indonesia. Soleil expects the accident to affect copper and gold output for the remainder of the year. As a result, Soleil's Q3, FY08 and FY09 EPS estimates move from $2.05, $10.15 and $11.75 to $1.55, $8.70 and $10.70, respectively. The Street estimates are currently $2.29 for Q3, $10.66 for FY08 and $12.65 for FY09.

Soleil said it still believes shares of Freeport are "an excellent value..."

Freeport stock hit a new 52-week low this morning when its price went as low as $63.30. With shares trading around this level, Soliel's $135 price target represents a potential gain of more than 105%.

Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa.

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