FCX Upgraded!
October 7th 2008 20:05
Barrons has just upgraded Freeport-McMoRan Copper & Gold (FCX)
...the stock is oversold and that the risk/reward is now compelling. Valuation multiples have contracted significantly, and free-cash generation is strong even if copper prices were to contract further.
As a result, we are upgrading to Outperform from Market Perform, but we are lowering our price target from $115 to $85
TheStreet.com today said:
At about $39, the stock is trading at about book value, less than 1X sales and 3.41X estimated 2009 earnings. (daclyyay[pb50!b200!f][vc60][iue12,26,9!lc20]]See Chart)
...the stock is oversold and that the risk/reward is now compelling. Valuation multiples have contracted significantly, and free-cash generation is strong even if copper prices were to contract further.
As a result, we are upgrading to Outperform from Market Perform, but we are lowering our price target from $115 to $85
TheStreet.com today said:
Freeport-McMoRan is one of the world's largest copper, gold and molybdenum mining companies in terms of proven reserves and production levels. The company has worldwide reveres of copper of around 90 billion pounds, 1.8 billion pounds of molybdenum and 41 million ounces of gold, with production levels since mid-2008 of 4.35 billion pounds of copper, 85 million pounds of molybdenum and 1.8 million ounces of gold. In 2007, mining revenues by commodity were comprised of 78% copper, 12% molybdenum and 10% gold. In mid-2006, Freeport and Phelps Dodge announced that they signed a definitive merger agreement under which Freeport would acquire Phelps Dodge for approximately $26 billion dollars in cash, creating the world's largest publicly traded copper company.
At about $39, the stock is trading at about book value, less than 1X sales and 3.41X estimated 2009 earnings. (daclyyay[pb50!b200!f][vc60][iue12,26,9!lc20]]See Chart)
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