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UPDATE: Bank Of America Downgrades Freeport-McMoRan Copper And Gold On Indonesia Uncertainty

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In a report published Thursday, Bank of America analyst Oscar Cabrera downgraded the rating on Freeport-McMoRan Copper and Gold (NYSE: FCX) from Buy to Neutral, and lowered the price target from $43.00 to $40.00.

In the report, Bank of America noted, “We are downgrading our Freeport McMoran (FCX) rating to Neutral from Buy and lowering our price objective (PO) to $40/share from $43, due to the uncertainty surrounding the company's negotiations with the Government of Indonesia (GOIN) on a progressive export duty on Grasberg's concentrate and renegotiation of the mine's contract of work (COW). While FCX trades at a 16% and 21% discount to its large diversified mining peers 2015E EV/EBITDA of 6.7x and P/NAV of 0.9x, it is not clear whether the company will be required to pay a 2014-16 export tax on copper concentrate sales from Grasberg or if these sales will resume shortly (or in 2015).”

Freeport-McMoRan Copper and Gold closed on Wednesday at $38.55.

Latest Ratings for FCX

DateFirmActionFromTo
Sep 2016MacquarieMaintainsNeutral
Sep 2016Morgan StanleyDowngradesEqual-weightUnderweight
Sep 2016Deutsche BankMaintainsHold

View More Analyst Ratings for FCX
View the Latest Analyst Ratings

Posted-In: Bank of America Oscar CabreraAnalyst Color Downgrades Analyst Ratings

 

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