News
Buy Freeport-McMoRan on expected recovery from mine disaster, UBS says
Published
5 months agoon
By
admin
Freeport-McMoRan is likely to rebound from an environmental disaster last month at its giant Grasberg mine in Indonesia that led the copper-and-gold producer to cut its production estimates, according to UBS. The investment bank upgraded Freeport to buy from neutral in a report out Thursday, raising its 12-month price target on the stock to $48 from $42.50, implying more than 23% upside from Thursday’s close. “We believe the market is pricing in an overly pessimistic outcome for Grasberg recover, therefore see the risk vs reward as attractive,” UBS analyst Daniel Major wrote to clients. Freeport last month declared force majeure at its Grasberg mine in Papua, Indonesia, in the western half of New Guinea, following a mud rush at the site that killed two and left five missing. Phoenix-based Freeport later slashed its 2026 estimate for copper production at the mine by 35%. FCX 1M mountain Freeport-McMoRan over the past month. The lower production forecast dented Wall Street’s confidence in Freeport’s growth estimates, but the effect of the environmental incident on its mining business is likely to be short-lived, according to UBS. “We have consulted various mining experts & they see the risk of a structural impairment to Grasberg’s production/value as low with water challenges relatively easier to resolve at Grasberg (up a mountain) vs many underground mines,” Major wrote. The UBS call is in line with the majority on the Street, where 12 of 22 analysts rate Freeport a buy or strong buy, according to LSEG data. Freeport shares rose about 2% on Friday, after tumbling 20.5% last week.
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
UBS’s picks for global returns next year
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
