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Freeport-McMoRan Sees Analysts Cut Their Price Targets

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3Q16 earnings

Freeport-McMoRan (FCX) is expected to release its 3Q16 earnings on October 25. In this article, we’ll see how Wall Street rates the company ahead of its 3Q16 earnings.

According to consensus estimates compiled by Bloomberg, Freeport-McMoRan has a one-year price target of $11.38. This represents an 18% upside over its October 13 closing prices.

Of the 20 analysts surveyed by Bloomberg, only four rate Freeport-McMoRan’s stock a “buy,” while two analysts rated it a “sell.” An overwhelming majority of analysts rate FCX as a “hold.”

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Recent action

The above graph shows analysts’ recent actions for Freeport-McMoRan. On October 11, UBS cut Freeport-McMoRan’s one-year price target to $11.00 from $12.10. On October 5, Scotia Capital had reduced FCX’s one-year price target to $12.25 from $13.50. Most other analysts have maintained their respective ratings and target prices for FCX in October.

Cowen is one of the most bullish brokerages on Freeport-McMoRan, setting a one-year price target of $15.00. This implies a 55% upside from current price levels. Morgan Stanley is among the brokerages that have a bearish view (SDS) on the company, setting FCX’s one-year price target at $7.00.

Asset sale

In September, several analysts downgraded Freeport-McMoRan (FCX) after it announced the sale of its Deepwater Gulf of Mexico (or GOM) energy assets to Anadarko Petroleum (APC). You can read How a Key Asset Sale by Freeport-McMoRan is Backfiring to learn more about the implications of the GOM transaction.

Freeport-McMoRan and Southern Copper (SCCO) have been trading in a narrow price channel for some time. Please read Freeport-McMoRan’s 4Q16 Outlook: Can Its Stock Return to Life? to learn more about FCX’s near-term outlook.

In the next article, we’ll see how analysts are rating Teck Resources (TCK) ahead of its 3Q16 financial results.

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