Deutsche Bank Reiterates Buy, $48 Target on Freeport-McMoRan

Deutsche Bank maintains its Buy rating and $48 target price on Freeport-McMoRan

as it updates its model following the company's agreement at its Grasberg mine and updated sales volume and cost guidance. DB notes, “Given marginally h-t-e wage hikes and ramp-up time to return to full production, our 2012E EPS declines 4% to $5.12, while 2013E cut 3% to $5.30. 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. With strike issues finally resolved, investors should re-focus on Freeport's increasingly attractive growth outlook and potential to pay rising dividends.” FCX closed at $37.44 per share on Friday.