Freeport-McMoRan Downgraded To Hold By Citigroup

Citigroup has published a research report on Freeport-McMoRan Copper & Gold, Inc.

and has downgraded the company to Hold from Buy. In the report, Citigroup writes "We are downgrading FCX shares to Hold after lowering our earnings and target price to $118 on higher costs. As well, FCX shares have racked-up impressive gains in recent months. While we remain confident with management's execution and cash flow deployment strategies, current copper prices arguably discount attractive supply-demand fundamentals. Assuming $4.15/lb and $4.00/lb Cu for 2011-12, we estimate EPS of $10.15 and $9.60 for respective P/Es of 10.9x and 11.6x. We are introducing a 2013 estimate of $8.85/sh using $3.60/lb Cu." Citigroup has also lowered the price target on Freeport-McMoRan from $124 to $118. Freeport-McMoRan Copper & Gold closed yesterday at $110.90.