FBR Capital Starts Freeport-McMoran with an “Outperform” Rating (FCX)
In a report on Friday, analysts at FBR Capital initiated coverage on gold and copper producer Freeport-McMoran Copper & Gold Inc. (FCX) with a bullish rating due to an expected long term upside.
The analysts rate FCX as “Outperform” with a price target of $41. This valuation suggests a 29% upside to Thursday’s closing price of $31.70.
“We are launching coverage of copper producers with a cautious near‐term outlook but believe that long‐term fundamentals will continue to support copper prices around $3/lb. In the near term, we believe that copper prices could remain under pressure due to a choppy demand outlook, inventory overhang, and impending supply growth. Longer term, however, we believe that prices will remain supported above the marginal cost and should provide incentives for needed supply growth,” said FBR Capital analyst Mitesh B. Thakkar.
Freeport-McMoran shares were down 21 cents, or -0.66%, during pre-market trading on Friday. The stock is down -7.31% year-to-date.
The Bottom Line
Shares of Freeport-McMoran (FCX) have a dividend yield of 3.94% based on last night’s closing price of $31.70 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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