uploads///part  analyst

Could Freeport-McMoRan’s Rally Lose Steam?


Jan. 23 2019, Updated 7:31 a.m. ET

Freeport-McMoRan’s rally

Article continues below advertisement

Recent action

Some brokerages have lowered their target price for Freeport this year: Goldman Sachs lowered it from $18 to $16 and Clarksons Platou Securities lowered it from $14 to $13 on January 15, and Raymond James lowered it from $16 to $14.50 on January 18.

Previously, we noted that Freeport seems to offer a good entry point. However, with its recent rally, the margin of safety has been reduced. Furthermore, Indonesia’s (EIDO) general elections this year could bring increased political posturing in the country, whose government has slapped Freeport with billions of dollars in environmental claims.

While Freeport stock could rise slightly, the risk-reward equation looks largely balanced. With the company’s production levels expected to fall and China’s slowdown, the upcoming transition years could bring additional challenges for Freeport. 


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.