Freeport McMoRan raised to Buy at UBS on 'compelling' copper outlook (NYSE:FCX)

NYSE: FCX) +1.1% in Wednesday’s trading, recovering a piece of the previous session’s sharp loss, as UBS upgrades shares to Purchase from Neutral with a $55 cost target. Freeport McMoRan (FCX) is the most liquid international copper pure play stock

financial investment with high connection to copper cost upside, and UBS expert Daniel Major sees the medium-term basic outlook for copper as “engaging” and placing is “cleaner” following Q3’s cost combination. Significant thinks the bottom-up financial investment case for Freeport (FCX) is mostly de-risked following the conclusion of the smelter and anticipated extension of the license at the Grasberg mine in Indonesia, and he anticipates modest volume development driven by recovery/sulfide leaching in The United States and Canada and upside to money returns, with buybacks rebooted in Q3.

The expert acknowledges near-term dangers from agreement downgrades, however sees existing levels as an appealing medium-term entry point with Freeport (FCX) prices in ~$ 4.25/ pound copper vs. UBS’ 2025 quote of $4.75/ pound.

Source: