The firm said it lowered its rating on the natural resources company due to the uncertainty the company is facing regarding its negotiations with the Indonesian government over progressive export taxes, and the renegotiation of its mining contract in the country.
Bank of America cut its price target on the stock to $40 from $43
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Shares of Freeport-McMoRan are down -0.75% to $38.26 in pre-market trading today.
Separately, TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (FCX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: