UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on Freeport-McMoRan Copper & Gold on Good 1Q13 Results

In a report published Monday, Bank of America analyst Oscar Cabrera reiterated a Buy rating on Freeport-McMoRan Copper & Gold FCX, but slightly lowered the price target from $39.00 to $38.00. In the report, Cabrera noted, “We reiterate our Freeport McMoRan (FCX) Buy rating, but lowered our PO (price objective) to $38/share from $39, following slightly stronger than expected 1Q13 results. FCX left its 2103 copper (4.3 bn lbs) and gold (1.4 mn oz) sales outlook unchanged, increasing molybdenum sales 2% to 92 mn lbs. But, FCX increased its 2013 copper cash costs to $1.45/lb from $1.35 on lower gold price assumption ($1400/oz from $1,200). Despite a largely unchanged 2013 outlook, we lowered our FCX PO due to an 8% decline in our NAV to $51/share. The decline came mainly from a lower grade profile at Cerro Verde during the mine's mill expansion (2013-17). We also adjusted LOM (life of mine) production profiles for FCX North & South American mines with reserves reported in FCX 2012 10K.” Freeport-McMoRan Copper & Gold closed on Friday at $28.24.