UPDATE: Bank of America Upgrades Freeport-McMoRan to Buy on Attractive Valuation

In a report published Tuesday, Bank of America upgraded shares of Freeport-McMoRan FCX from Neutral to Buy and increased the price objective from $38 to $39. Bank of America reported that, “Copper is often seen of as the bellwether commodity, for the mining sector, for and in China and for the wider economy. We believe that copper has interesting supply demand fundamentals in the medium term. Our commodities team has previously written that, we could see as much as a 6 Mtpa deficit in the copper market by 2020. Of course, copper is only a 20 Mt per year market so a deficit of this size is not possible, rather price rationing would keep the market in balance and to us speaks to the potential for strong prices for years to come." Shares of Freeport McMoRan closed at $31.50 on Monday.