Citigroup Downgrades Freeport-McMoran to “Sell” (FCX)
Citigroup downgraded gold and copper producer Freeport-McMoRan Copper & Gold Inc. (FCX) on Monday, after the analysts cut their 2014 copper price by 13%.
The analysts downgraded FCX from “Neutral” to “Sell” and now see shares reaching $25, down from the previous target of $35. This new valuation suggests a 22% downside to Friday’s closing price of $31.92.
Freeport-McMoran is also expected to have minimal free cash flow over the next two years, said the analysts; yet another factor in their decision to downgrade the stock.
Freeport-McMoran shares were down $1.57, or -4.92%, during pre-market trading on Monday. THe stock is down -6.67% year-to-date.
The Bottom Line
Shares of Freeport-McMoran (FCX) have a dividend yield of 3.92% based on Friday’s closing price of $31.92 and the company’s annualized dividend payout of $1.25 per share.
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.
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