Jefferies downgraded Freeport-McMoRan (FCX) to Hold from Buy with a price target of $40, down from $48. The firm cites the company’s ongoing challenges in Indonesia, the impact of its higher spending on estimates, and its neutral near-term view on copper for the downgrade. Freeport is operating very well in the Americas, but the risk to earnings in Indonesia is to the downside for now, the analyst tells investors in a research note. Jefferies believes the company’s free cash flow is likely to be relatively low for the next 12-18 months and that better share entry points could emerge.
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