Standpoint Research Upgrades Freeport-McMoRan (FCX) to Buy
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Price: $61.52 +1.64%
Rating Summary:
28 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
Rating Summary:
28 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
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Standpoint Research upgraded Freeport-McMoRan (NYSE: FCX) to Buy with a price target of $47.00.
The firm comments, "FCX has been oversold on bad news by short-sighted traders and portfolio managers and should be bought here at $32.38. The shares are now trading where they were five years ago and Relative Strength has dropped to a level that is usually a sign of market over-reaction to bad news and concerns. Only once in the last ten years has FCX gone out-of-favor like this and that was in late 2008 / early 2009. The market seems to be pricing in a drop in copper prices of another 25% on top of the 25% drop since July. FCX shares crashed to $12 in 2008 on forced selling and then bounced > 400% off that low point to $61 in December 2010. The run to $61 was an over-reaction as was the 48% drop since December. Fair value for FCX is probably somewhere in the middle, but it could be an 18-36 month holding period for this 44% move we are forecasting."
For more ratings news on Freeport-McMoRan click here and for the rating history of Freeport-McMoRan click here.
Shares of Freeport-McMoRan closed at $34.82 yesterday.
The firm comments, "FCX has been oversold on bad news by short-sighted traders and portfolio managers and should be bought here at $32.38. The shares are now trading where they were five years ago and Relative Strength has dropped to a level that is usually a sign of market over-reaction to bad news and concerns. Only once in the last ten years has FCX gone out-of-favor like this and that was in late 2008 / early 2009. The market seems to be pricing in a drop in copper prices of another 25% on top of the 25% drop since July. FCX shares crashed to $12 in 2008 on forced selling and then bounced > 400% off that low point to $61 in December 2010. The run to $61 was an over-reaction as was the 48% drop since December. Fair value for FCX is probably somewhere in the middle, but it could be an 18-36 month holding period for this 44% move we are forecasting."
For more ratings news on Freeport-McMoRan click here and for the rating history of Freeport-McMoRan click here.
Shares of Freeport-McMoRan closed at $34.82 yesterday.
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