Should You Buy This Stock Before Copper Gets Red-Hot Again?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 28 2024
0mins
Source: NASDAQ.COM
- Copper Prices Correction: Copper prices, known as the red metal, hit record highs but are now in a correction zone after falling by over 10% from recent peaks.
- Impact of Chinese Economy: Concerns over the Chinese economy, especially in the real estate sector, have contributed to the decline in copper prices.
- Copper Demand Outlook: Despite Chinese economic concerns, the outlook for copper remains positive due to its role in renewable energy, electric cars, and AI.
- Supply Deficit Predictions: Analysts forecast a structural supply deficit in copper markets by 2030, with incremental demand from AI technologies contributing to this gap.
- Freeport-McMoRan Analysis: Freeport-McMoRan, a major copper miner, is discussed as a potential investment opportunity due to its production profile, costs, and balance sheet strength.
Analyst Views on FCX
Wall Street analysts forecast FCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FCX is 52.40 USD with a low forecast of 44.00 USD and a high forecast of 68.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 58.850
Low
44.00
Averages
52.40
High
68.00
Current: 58.850
Low
44.00
Averages
52.40
High
68.00
About FCX
Freeport-McMoRan Inc. is an international metals company focused on copper. The Company operates geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. The Company's segments include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining. Its operations include North America, South America and Indonesia. In North America, it manages seven copper operations: Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines: Henderson and Climax in Colorado. It also operates a copper smelter in Miami, Arizona. In South America, it manages two copper operations: Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Grasberg minerals district also produces gold and silver.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
