Raymond James Adjusts Freeport-McMoRan Price Target to $83 From $76

Freeport-McMoRan (FCX) shares are up 121% from their 52-week low, driven by record copper prices and strong Q2 earnings. However, valuation concerns, overbought technicals, and production challenges raise questions about the rally's sustainability. FCX trades at $77.82 with a P/E of 38.1x, and analysts see a slight downside.

Freeport-McMoRan (FCX) reported Q3 2025 earnings, highlighting a tragic incident at its Grasberg operation. The company expects 2025 sales of 3.5B lbs copper, 1.05M oz gold, and 82M lbs molybdenum, with Q4 sales impacted by Indonesia operations. Full-year operating cash flows are projected at $5.5B, with capital expenditures of $4.5B. Unit net cash costs are expected to average $1.68/lb copper for 2025, rising to $2.47/lb in Q4. FCX anticipates a 35% reduction in PTFI production in 2026 due to t

Copper prices hit record highs in New York and London, driven by US tariff threats and supply shifts. Comex copper reached $6.7270 per pound, while LME prices approached all-time highs. US imports surged, turning a projected 2026 surplus into a potential deficit. Southern Copper (SCCO) surged 15% in a week, outpacing peers like Freeport (FCX) and Rio Tinto (RIO).

Freeport-McMoRan (FCX) gained $7.8B in market value after copper prices suggested an $870M boost to its 2026 cash flow. Shares hit a record high of $76.66, up 7.64% on Friday. Analysts' average target is $71.73, 6.4% below Friday's close. Copper prices rose 1.72% to $6.58/lb, but fell 0.5% for the week. Management projects $8.3B in cash flow at $6/lb copper, with a $150M change for every 10-cent fluctuation.

Freeport-McMoRan (FCX) stock rose 8% after Q2 earnings beat estimates, with adjusted EPS of $0.74 vs. $0.62 expected and revenue of $7.03B vs. $6.7B. The company reported strong production and guided for increased output and $4.8B in capital spending by 2027, funded by operating cash flow. Analysts raised price targets to $70-$78, with an average of $73-$74.

U.S. stocks rose Friday, trimming weekly losses. The S&P 500 gained 0.4%, Dow +1%, Nasdaq +0.4%. Ross Stores led gains with a 4.4% rise after strong earnings. Bitcoin surged above $77,000, boosting crypto-related stocks like Robinhood and Coinbase. Treasury yields climbed, with the 10-year yield at 4.73%. Oil prices rose to $92.67 per barrel. Newmont and Freeport-McMoRan gained, while OSI Systems dropped 5.2% on weak earnings.