Deutsche upgrades Freeport-McMoRan to Buy on ‘valuation disconnect’

Deutsche Bank analyst Liam Fitzpatrick upgraded Freeport-McMoRan (FCX) to Buy from Hold with an unchanged price target of $47. The firm sees a “valuation disconnect” in the shares as well as potential U.S. policy catalysts. The stock has materially underperformed the copper price over the past six months, partly due to operational issues in Indonesia and recent downgrades to its 2025 guidance, the analyst tells investors in a research note. However, Deutsche now expects “material” cash flow upside from potential U.S. copper tariffs and other possible policy measures for Freeport. The company also has large gold exposure, which provides a hedge against macro and policy developments, and an attractive valuation at current share levels, the firm contends.