NEW YORK (TheStreet) -- Freeport-McMoRan (FCX) - Get Freeport-McMoRan, Inc. (FCX) Report shares are diving 9.02% to $7.22 on Tuesday after Citigroup lowered its rating on the stock to "sell" from "neutral" with a price target of $4.50.
The firm is bearish on the company's plan to put all of its assets under review for sale, with the focus of raising up to $10 billion to make up for slumping commodity prices as its debt starts to mature, according to Barron's.com.
But over time, this decision will erode net asset value, analysts noted.
"In addition, high leverage and tough financing conditions for miners could weigh on valuation and/or limit the ability to complete additional asset sales," the firm said.
Adding more pressure to the stock, oil futures were tanking on Saudi Oil Minister Ali Ibrahim Naimi's remarks that output cuts will not happen.
Crude oil (WTI) is slipping 5.03% to $31.71 per barrel and Brent crude is falling 4.12% to $33.26 per barrel.
Separately, TheStreet ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FCX