Freeport-McMoRan (FCX) released its 2Q17 earnings on July 25, 2017, and Teck Resources (TECK) released its 2Q17 financial results on July 27. Brokerages typically reassess their recommendations after a company’s earnings release.
Consensus price target
According to the consensus estimates compiled by Thomson Reuters, Freeport-McMoRan (FCX) carries a one-year price target of $14.76, implying a 1.9% upside over its August 1 closing price. In comparison, the stock carried a consensus price target of $14.32 on July 24, a day before its earnings release.
Some brokerages raised Freeport’s target price after its 2Q17 earnings release. Jefferies raised Freeport’s target price from $14.50 to $18.00 on July 26. BMO Capital Markets raised Freeport’s price target from $15.00 to $17.00 on the same day. On July 27, Cowen raised Freeport’s price target from $20.00 to $22.00.
Teck Resources (TECK) trades on the Toronto Stock Exchange (EWC), where it is priced in Canadian dollars. Teck Resources stock received a consensus one-year price target of $33.91 Canadian from the 17 analysts polled by Thomson Reuters on August 1. The stock carried a price target of $33.90 Canadian on July 26, which was the day before its 2Q17 earnings release.
Some analysts cut Teck Resources’ target price after the company’s 2Q17 earnings release. On July 28, National Bank of Canada cut Teck Resources’ target price from $36.00 Canadian to $34.00 Canadian while maintaining its “outperform” rating. Canaccord Genuity also cut Teck Resources’ price target from $35.00 Canadian to $34.00 Canadian on the same day.
In the next article, we’ll see why brokerages have turned bullish on Freeport-McMoRan after its 2Q17 earnings release.