NEW YORK (TheStreet) -- Freeport-McMoRan (FCX) shares are down 0.6% to $33.05 in pre-market trading on Thursday after Credit Suisse (CS) downgraded the stock to "neutral" from "outperform" and lowered its price target to $37 from $45.
Credit Suisse praised the mining company for its commodity-diverse portfolio while noting some of the challenges that caused the firm to lower its outlook.
"Its 2012 Oil & Gas acquisitions were justified on the basis that the Copper and Oil & Gas 'silos' would remain financially independent and self-financing," the firm said. "Aggressive balance sheet deleveraging targets were also set ($12bn net debt in 2016). Recent commodity price weakness may challenge this commitment. FCX is also moving to bulk underground mining methods, which increase the level of technical operations risk in the medium term."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (FCX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."