BofA/Merrill Lynch Upgrades Freeport-McMoRan (FCX) to Buy (Earlier)

Before the open, BofA/Merrill Lynch upgraded Freeport-McMoRan (NYSE: FCX) from Neutral to Buy and maintained a price target of $40.00.

Analyst Oscar Cabrera cited: 1) improving FCF profile (+10% after 2016E); 2) we forecast sales growth of 35% for copper and 18% for O&G over the next 3 years, resulting in EBITDA growth of +80%; 3) best in class operating execution; 4) world class brownfield expansions with below avg. development costs ($13,600/t vs. $15,500/t industry avg.); and 5) high dividend yield (3.9% vs. mining peers at 2.7%).

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 $32.40 yesterday.

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