Freeport-McMoRan upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank upgraded Freeport-McMoRan (FCX) to Outperform from Sector Perform with a price target of $50, up from $41. The price of molybdenum has "soared" to levels above $35.00/lb and this "impressive rally" to nearly five-times the price observed at its 2020 bottom reflects improved market conditions on the back of increasing demand and supply shortages, said the firm, which analyzed whether there is evidence of a more structural change in the molybdenum market that points to strong pricing conditions ahead. Freeport, Southern Copper (SCCO) and Antofagasta (ANFGF) are the three largest producers of molybdenum among mining companies under the firm’s coverage and that trio accounts for 30% of global production, the analyst noted.