Deutsche Bank Maintains "Buy" Rating On Freeport-McMoRan
Thursday, December 15, 2021 2:45 PM

Deutsche Bank (DB) maintained its "Buy" rating on Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), saying investors should re-focus on the company's increasingly attractive growth outlook and potential to pay rising dividends, with Grasberg mine strike issues finally resolved.

The brokerage has a price target of $48.00 on the stock.

"Our 2012E and 2013E EPS are 8% and 1% higher than Bloomberg consensus of $4.72 and $5.23, respectively due to DB's high commodity deck," DB analyst Jorge Beristain said in a note.

The near 3-month strike has ended following a new agreement December 14 which extends contract by 2 years. Freeport chose to pay one-time bonus equivalent to 3 months of basic wages for humanitarian purposes as workers forfeited all wages during their walk-out.

The company has lowered its 4Q11 consolidated sales guidance for copper and gold due to lost Grasberg output.

On Thursday, FCX is trading 0.8 percent lower at $37.12. The stock has been trading in the 52-week range between $28.85 and $61.35.