Freeport-McMoRan Downgraded at Several Firms Following Acquisition News (FCX)

Freeport-McMoRan Downgraded at Several Firms Following Acquisition News (FCX)

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International mining company, Freeport-McMoRan Copper & Gold Inc.(FCX) sees several downgrades on Thursday following Wednesdays reported acquisitions.

Following FCX’s report to acquire both Plains Exploration & Production Company(PXP) and McMoRan Exploration Co.(MMR) yesterday, several firms are downgrading the company. Many analysts believe that the acquisition will result in too much change in the company’s strategies.

Deutsche Bank downgraded FCX from a “Buy” to a “Hold,” and has given the company a price target of $40. This price target suggests a 21% increase over the stock’s current price of $31.45.

Goldman Sachs reported that they have downgraded the company from a “Buy” to “Neutral,” with a price target of $38. This price target would be a 17% increase over the stock’s current price.

BMO Capital downgraded FCX to “Market Perform,” and have given the company a $30 price target. This price target suggests a slight decline from the stock’s current price.

Citigroup also downgraded FCX, lowering the company’s rating from a “Buy” to “Neutral,” and giving the company a $35 price target. The firms price target suggests a 10% upside to the stock’s current price.

Freeport-McMoRan shares were down 68 cents, or -2.11% during premarket trading Thursday. The stock is down -10.67% YTD.
The Bottom Line
Shares of Freeport McMoran (FCX) have a 3.89% dividend yield, based on last night’s closing stock price of $32.16. The stock has technical support in the $26-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$37 price levels.

Freeport-McMoRan Copper & Gold Inc.(FCX)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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