Breaking Down Freeport-McMoRan: 4 Analysts Share Their Views

Throughout the last three months, 4 analysts have evaluated Freeport-McMoRan FCX, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $53.0, a high estimate of $57.00, and a low estimate of $48.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.07%.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Freeport-McMoRan among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Freeport-McMoRan. This information provides a snapshot of how analysts perceive 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Freeport-McMoRan's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Freeport-McMoRan analyst ratings.

Unveiling the Story Behind Freeport-McMoRan

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.

Unraveling the Financial Story of Freeport-McMoRan

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Freeport-McMoRan's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 16.59%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Freeport-McMoRan's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.75%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Freeport-McMoRan's ROE excels beyond industry benchmarks, reaching 3.01%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Freeport-McMoRan's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.96%, the company may face hurdles in achieving optimal financial performance.

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.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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