Freeport-McMoRan Inc. (NYSE:FCX) was reviewed by Jefferies analyst Christopher LaFemina on Friday, March 31 amid ongoing negotiations with the Indonesian government. The analyst believes that the company is likely to close soon an agreement with the government which may prove positive for FCX shares going forward. Consequently, Freeport stock, which has already gained about 32.15% during last 12 months, rose about 0.38% during active trading yesterday.
In his updated research note issued to clients yesterday, Mr. LaFemina stated that Freeport-McMoRan’s upcoming agreement with the Indonesian government is likely to allow copper concentrate exports from Grasberg temporarily. Therefore, the analyst maintained his Buy rating for the mining business alongside reiterating a price target of $16 for the shares. The company currently has 1.45 billion shares outstanding in the market. These shares have acquired 52-week high and low of $17.06 and $8.76, respectively, along with daily stock trading range standing at $13.21-13.59.
The analyst further added that while the agreement would benefit FCX, it would mean modest negative for the copper market as it would increase supply by about 500-kilo tons per annum (ktpa). Moreover, in his research note, Christopher further mentioned, “The analyst stated, "FCX and Indonesia still appear to be far apart regarding a longer term agreement, this may be an early sign of progress on the more difficult issues."
Given this optimism, FCX investors have continued to reside with the bulls. The Wall Street analysts have given the $19.38 billion business a consensus price target of $14.4. This represents about 7.78% upside potential over the company’s previous closing price. Of the total 23 analysts covering the stock at FactSet Fundamentals, three provided with a Buy rating, 18 analysts recommended Hold, whereas one analyst each suggested Underweight and Sell ratings.