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Scotiabank downgrades Freeport-McMoRan on recent share rally

Scotiabank analyst Orest Wowkodaw downgraded Freeport-McMoRan to Sector Perform from Outperform with an unchanged price target of $52. The firm cites the recent share price appreciation and the negligible implied return to its target for the downgrade. The analyst notes Freeport- shares are up 28% since September 6. Following the outperformance, the shares are now trading at a relatively full valuation, the analyst tells investors in a research note. Scotiabank also sees a lack of obvious near-term catalysts, a challenged near-term growth profile, and only modest free cash flow generation ahead for the company.

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