Deep Dive Into Freeport-McMoRan Stock: Analyst Perspectives (5 Ratings)

In the last three months, 5 analysts have published ratings on Freeport-McMoRan FCX, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $46.0, a high estimate of $48.00, and a low estimate of $40.00. Experiencing a 13.53% decline, the current average is now lower than the previous average price target of $53.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Freeport-McMoRan is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Freeport-McMoRan. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Freeport-McMoRan compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Freeport-McMoRan's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Freeport-McMoRan's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Freeport-McMoRan analyst ratings.

Get to Know Freeport-McMoRan Better

Freeport-McMoRan owns stakes in 10 copper mines, led by its 49% ownership of the Grasberg copper and gold operations in Indonesia, 55% of the Cerro Verde mine in Peru, and 72% of Morenci in Arizona. It sold around 1.2 million metric tons of copper (its share) in 2023, making it the one of the world's largest copper miners by volume. It also sold about 900,000 ounces of gold, mostly from Grasberg, and 70 million pounds of molybdenum. About 75% of 2023 revenue was from copper, with a further 15% from gold and about 10% from molybdenum. It had about 25 years of copper reserves at end December 2023. we expect it to sell similar amounts of copper midcycle in 2028, though we expect gold volumes to decline to about 700,000 ounces then due to falling production at Grasberg.

A Deep Dive into Freeport-McMoRan's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Freeport-McMoRan's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 16.59%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Freeport-McMoRan's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 7.75%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Freeport-McMoRan's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.01%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Freeport-McMoRan's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.96%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Freeport-McMoRan's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.55, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.