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

In a report published Thursday, Bank of America analyst Oscar Cabrera downgraded the rating on

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.