According to consensus estimates compiled by Bloomberg, Freeport-McMoRan (FCX) has a one-year price target of $12.01. That’s a 3.1% downside over its August 2, 2016, closing price.
Of the 19 analysts surveyed by Bloomberg, only three rate the stock as a “buy,” while one rates it as a “sell.” The remaining 15 analysts rate the stock as a “hold.”
The chart above shows Wall Street analysts’ recent actions on Freeport. Several analysts have revised their target prices for Freeport following its 2Q16 earnings release. Macquarie has raised Freeport’s one-year target price from $10 to $13 while maintaining its “neutral” rating.
Scotia Capital has also raised Freeport’s target price from $13 to $13.5. Incidentally, Scotia had raised Freeport’s target price from $10.5 to $13 before its 2Q16 earnings release. Clarksons Platou Securities had also raised Freeport’s target price from $11 to $13 before the company’s 2Q16 earnings release.
Most analysts have either maintained or increased Freeport’s target price. However, Goldman Sachs has cut Freeport’s target price from $12 to $11 after its 2Q16 earnings release. The brokerage has been bearish on base metals for some time now.
Earlier this year, Goldman Sachs said that copper prices could fall toward $4,000 per metric ton. However, copper is currently trading in the ballpark of $5,000 per metric ton.
In the next part of the series, we’ll take a closer look at Freeport’s 2Q16 earnings.