Freeport-McMoRan price target lowered to $48 from $54 at BMO Capital

BMO Capital analyst Katja Jancic lowered the firm’s price target on Freeport-McMoRan (FCX) to $48 from $54 and keeps an Outperform rating on the shares after the company provided an estimate of the preliminary impact from the mud rush incident at the Grasberg Block Cave mine that occurred on September 8. With production at Grasberg not expected to return to pre-incident levels until 2027, the 35% preliminary cut to the 2026 production outlook is “an incremental negative,” says the analyst, who thinks the negative near-term announcement “will likely put FCX in the penalty box.” However, BMO adds that 60% of Freeport copper production comes from North and South America and says a potential increase in copper prices from reduced supply “could somewhat help.”