Freeport-McMoRan (NYSE:FCX) Price Target Raised to $73.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its price target on Freeport-McMoRan to $73 from $70, while keeping a sector perform rating. The new target implies about 19% upside from the current share price.
• Freeport-McMoRan reported better-than-expected Q2 earnings, posting EPS of $0.74 versus the $0.62 consensus and revenue of $7.03 billion versus estimates of about $6.62 billion. Revenue still fell 7.3% year over year.
• The stock was down 3.4% to $61.32 in Friday trading, even after the earnings beat and the higher analyst target. The stock has traded between $35.15 and $72.28 over the past year, and analysts’ consensus remains Moderate Buy with an average target of $70.18.

Freeport-McMoRan (NYSE:FCX - Get Free Report) had its price objective raised by research analysts at Royal Bank Of Canada from $70.00 to $73.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "sector perform" rating on the natural resource company's stock. Royal Bank Of Canada's price target indicates a potential upside of 19.05% from the company's current price.

A number of other analysts also recently weighed in on FCX. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Freeport-McMoRan in a report on Friday, May 15th. Weiss Ratings lowered Freeport-McMoRan from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, July 7th. Raymond James Financial decreased their target price on Freeport-McMoRan from $72.00 to $68.00 and set an "outperform" rating for the company in a research report on Friday, April 24th. CICC Research lowered their target price on Freeport-McMoRan from $64.40 to $63.40 and set an "outperform" rating on the stock in a research report on Tuesday, April 28th. Finally, Citigroup reiterated a "positive" rating on shares of Freeport-McMoRan in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $70.18.

Freeport-McMoRan Trading Down 3.4%

NYSE:FCX traded down $2.18 during trading hours on Friday, hitting $61.32. 2,726,924 shares of the company were exchanged, compared to its average volume of 17,517,666. Freeport-McMoRan has a one year low of $35.15 and a one year high of $72.28. The company has a current ratio of 2.39, a quick ratio of 1.13 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $88.15 billion, a price-to-earnings ratio of 32.69, a price-to-earnings-growth ratio of 0.64 and a beta of 1.37. The company has a fifty day simple moving average of $63.59 and a 200 day simple moving average of $62.33.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The natural resource company reported $0.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.12. Freeport-McMoRan had a net margin of 10.34% and a return on equity of 9.88%. The firm had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $6.62 billion. During the same quarter in the previous year, the company earned $0.54 EPS. The company's revenue for the quarter was down 7.3% on a year-over-year basis. Sell-side analysts expect that Freeport-McMoRan will post 2.72 EPS for the current fiscal year.

Hedge Funds Weigh In On Freeport-McMoRan

A number of hedge funds and other institutional investors have recently modified their holdings of FCX. Steph & Co. grew its stake in Freeport-McMoRan by 43.7% in the 1st quarter. Steph & Co. now owns 493 shares of the natural resource company's stock valued at $29,000 after purchasing an additional 150 shares during the period. Cassaday & Co Wealth Management LLC bought a new stake in shares of Freeport-McMoRan during the 1st quarter worth $29,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Freeport-McMoRan in the 4th quarter worth about $25,000. Kemnay Advisory Services Inc. purchased a new position in shares of Freeport-McMoRan in the 4th quarter worth about $29,000. Finally, Financial Life Planners bought a new position in Freeport-McMoRan during the first quarter valued at about $34,000. Hedge funds and other institutional investors own 80.77% of the company's stock.

Freeport-McMoRan News Roundup

Here are the key news stories impacting Freeport-McMoRan this week:

• Positive Sentiment: FCX reported Q2 adjusted EPS of $0.74, above estimates of $0.62, on revenue of $7.03 billion versus expectations of about $6.6 billion, signaling better-than-expected operating performance. Freeport-McMoRan earnings transcript
• Positive Sentiment: Higher realized metal prices helped offset lower copper and gold volumes, and reports highlighted a sharp increase in net income, reinforcing the earnings beat. FCX's Q2 Earnings and Revenues Top Estimates on Higher Metal Prices
• Positive Sentiment: Stifel Nicolaus raised its price target on FCX to $80, suggesting at least one analyst sees more upside after the results. Stifel Nicolaus Raises Freeport-McMoRan Price Target
• Neutral Sentiment: Management’s update pointed to a softer near-term copper sales outlook, including a weaker Q3 view, which may temper enthusiasm even after the earnings beat. FCX Stock Falls Amid Soft Q3 Outlook As Copper Price Slips
• Negative Sentiment: Lower operating rates at Grasberg weighed on revenue and contributed to investor concern about production momentum, helping explain why the stock has been under pressure despite the earnings beat. Freeport-McMoRan slips as lower Grasberg operating rates weigh on Q2 revenue

Freeport-McMoRan Company Profile

Freeport-McMoRan Inc is a U.S.-based natural resources company primarily engaged in the exploration, mining and processing of copper, gold and molybdenum. Its operations encompass large-scale open-pit and underground mining as well as associated concentrator and milling facilities. The company produces copper in the form of concentrates and cathodes, and also recovers gold and molybdenum as co-products; its business model includes exploration, development, mining, beneficiation and the sale of bulk commodities to smelters and industrial customers.

Freeport-McMoRan conducts operations and development activities across multiple geographies, with substantial assets in the Americas and Indonesia.

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