UPDATE: Citigroup Downgrades Freeport-McMoRan to Neutral

Citigroup has published a research report on Freeport-McMoRan FCX and downgraded the company from Buy to Neutral with a lowered price target, from $46 to $35. In the report, Citigroup wrote, "We are downgrading FCX to Neutral from Buy and lowering our target price to $35 following the announcement today to purchase Plains Exploration & Production (PXP) and McMoRan Exploration (MMR). While we are leaving our estimates unchanged since the proposed transaction is still subject to shareholder vote from the target companies and not expected to close until 2Q13, FCX shares may continue to trade at a discounted valuation given the prospects of increased leverage, EPS dilution, and shareholder pushback on the diversification." Freeport-McMoRan closed Wednesday at $32.17.