UPDATE: Morgan Stanley Downgrades Freeport-McMoRan (FCX) to Equalweight

(updating comment)

Morgan Stanley analyst Carlos De Alba downgraded Freeport-McMoRan (NYSE: FCX) from Overweight to Equalweight with a price target of $12.50.

The analyst comments "Freeport has shown solid execution in a very challenging environment and has continued to make good progress on the transition to underground mining at its Indonesian operations, which should support significant EBITDA and FCF generation in the next few years. However, we believe this is already priced into the stock at current levels, considering the Morgan Stanley copper deck of $2.83/lb in 2021 and $2.63/lb in 2022 vs. spot at ~$2.9. FCX trades at 6.4x our 2021e EBITDA, or almost one std. dev. above its historical average (5.7x). At spot copper and gold, the stock trades at 5.7x 2021e EBITDA. We calculate the stock is discounting ~$2.74 copper assuming gold at spot."

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 $13.10 yesterday.

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