Market Overview

Amid Copper Selloff, Barclays Likes Southern Copper And Freeport-McMoRan

Share:
Amid Copper Selloff, Barclays Likes Southern Copper And Freeport-McMoRan
Related SCCO
Benzinga's Top Upgrades, Downgrades For August 16, 2017
Jim Cramer Shares His Thoughts On Southern Copper And Carlyle Group
Related FCX
Benzinga's Top Upgrades, Downgrades For August 15, 2017
Lightning Round: Jim Cramer Shares His Thoughts On Freeport-McMoRan, Pfizer And More
The Vetr community has downgraded $FCX to 3-Stars (Vetr)

Barclays took a neutral position on the copper sub-sector in a report on U.S. Metals & Mining issued Thursday.

Analyst Matthew J. Korn expected “the bullish impact of lower-than-expected metal supply to outweigh a slowdown in Chinese consumption growth and push copper prices higher.”

Both Southern Copper Corp (NYSE: SCCO) and Freeport-McMoRan Inc (NYSE: FCX) “boast high-probability mining expansion projects over the next two years, but we consider pure-play [Southern Copper's] overall risk profile more favorable,” according to the report.

Korn added that Freeport-McMoRan’s “copper business is world-class, but we expect the stock to remain pressured by uncertainty around its Indonesian operations and, more acutely, by its strategy to invest heavily into the E&P business just as oil prices now look likely to stay lower for longer.”

The firm maintained an Overweight rating on Southern Copper, which recently traded at $26.19, up 1.99 percent.

Freeport-McMoRan was rated Equal-weight and recently traded at $18.89, up 3 percent.

Image credit: Raike, Wikimedia

Latest Ratings for SCCO

DateFirmActionFromTo
Aug 2017HSBCDowngradesBuyHold
Aug 2017BarclaysMaintainsUnderweight
Feb 2017BarclaysDowngradesEqual-WeightUnderweight

View More Analyst Ratings for SCCO
View the Latest Analyst Ratings

Posted-In: Barclays CopperAnalyst Color Long Ideas Commodities Markets Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (FCX + SCCO)

View Comments and Join the Discussion!