BUZZ-Street view: Brokerages cut Freeport's PT on lower production forecast
Brokerages have cut Freeport-McMoRan's price target (PT) following a force majeure declaration at its Grasberg mine, leading to a 4.7% drop in shares to $35.92. BMO Capital Markets revised its PT to $48, citing a significant 35% cut to the 2026 production outlook. Raymond James and JP Morgan also reduced their PTs, with JP Morgan removing the stock from its focus list. Despite these cuts, some brokerages see potential upside in FCX shares due to expected support from copper prices amid production shortfalls.
(Updates)
Shares of copper miner Freeport-McMoRan (FCX.N) fall 4.7% to $35.92
Co on Wednesday declared force majeure at its Grasberg mine in Indonesia and said it is expecting consolidated sales to be lower for copper and gold in the third quarter
REVISED OUTLOOK WORSE THAN EXPECTED
BMO Capital Markets (cuts PT to $48), says that although a reduction in 2H’25 was expected, “the 35% preliminary cut to 2026 production outlook is an incremental negative, with production at Grasberg not expected to return to pre-incident levels until 2027”
Raymond James (cuts PT by $9) believes FCX has excellent assets, but also has higher jurisdictional risk given Grasberg is in Indonesia
JP Morgan (cuts PT by $10) removes stock from its U.S. Equity Analyst Focus List, says impact through next year is worse than expectations
However, brokerage sees upside in FCX shares “with a higher bias on copper prices” that are likely to be supported by the shortfall in production
Bernstein (cuts PT to $48.5) says current copper prices are fairly priced, believes FCX can outperform over the next 12 months
Brokerage lowers PT by $2 but upgrades stock to “outperform” from “market perform”
