Morgan Stanley Maintains Overweight on Freeport-McMoRan
Morgan Stanley has published a research report on Freeport-McMoRan (NYSE: FCX) after shares have lagged recently due to concerns about divestment requirements.
In the report, Morgan Stanley writes, "We think a possible scenario could be for FCX to divest the 9.36% stake in PT Freeport Indonesia held through its wholly owned subsidiary PT Indocopper Investama. In May 2008, FCX signed a memorandum of understanding with the Papua provincial government to determine the feasibility of the province acquiring the 9.36% stake. We would expect such a transaction, if it happens, to be close to fair market value, minimizing the impact on valuation."
Morgan Stanley maintains its Overweight rating and $55 price target on Freeport-McMoRan, which is currently trading down $0.43 from Friday's $38.78 closing price.
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