Copper Prices Rebound as Market Stabilizes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy FCX?
Source: seekingalpha
- Market Recovery Signs: As the recent selloff in metals eased, Chinese firms began showing signs of copper buying, with copper futures climbing to $13,478 per ton on the London Metal Exchange, marking a 4.6% increase, indicating a potential improvement in market sentiment.
- Restocking Demand: Despite weak economic data showing sluggish factory activity, manufacturers have re-entered the market to purchase copper at lower prices to restock inventories ahead of the Lunar New Year, reflecting expectations for future demand.
- Government Reserve Expansion: China's intention to expand copper reserves and collaborate with state-owned producers to boost commercial stockpiles was highlighted in the annual briefing by the Nonferrous Metals Industry Association, emphasizing the strategic importance of this move, which could further drive copper prices up.
- Macroeconomic Support: The broader macro backdrop is favorable as President Trump agreed to reduce tariffs on Indian imports to 18%, while recent data showed U.S. factory activity unexpectedly expanded at the fastest pace in over three years in January, providing additional support for industrial metals.
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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: 59.220
Low
44.00
Averages
52.40
High
68.00
Current: 59.220
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.
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