Jefferies cited improving free cash flow trends and cost reduction as catalysts for FCX
Shares of Freeport-McMoRan Inc (NYSE:FCX) are climbing, up 2.2% to $38.80 in premarket trading, following an upgrade from Jefferies. The firm boosted its rating from "hold" to "buy" and raised its price target to $48 from $40, citing improving free cash flow trends and cost reductions as catalysts for future growth for the copper producer.
There could be even more room for upgrades, as 10 of the 18 analysts covering FCX still rate it a lukewarm "hold." Meanwhile, options traders appear notably bullish, with Schaeffer's put/call open interest ratio (SOIR) of 0.4 sitting at its lowest percentile over the past 12 months -- a sign of strong short-term call-buying activity.
On the technical side, Freeport-McMoRan stock is set to open above its 60-day moving average, a key long-term resistance level, as it bounces back from its Feb. 3 low of $34.89, the stock's weakest level since November 2023. FCX remains just below breakeven on both a year-to-date and year-over-year basis.