Increased copper and gold production from Freeport-McMoRan Inc. is expected to coincide with long term strength in prices for both metals into 2021 to boost the mining giant in the coming year, a market analyst says.
That report comes after the Phoenix-based company reported earnings on July 23 that beat analysts' estimates for the second quarter amid challenges brought on by the Covid-19 pandemic.
In a note to investors, CFRA Research in New York City maintained a buy opinion on shares of Freeport-McMoRan, increasing its 12-month target price by $3 to $16 and estimating earnings per share of $1.30 in 2021.
Those figures take into consideration escalating trade tensions between the U.S. and China that could reverse copper prices modestly, but that slowdown isn’t expected to last beyond the short term, according to Matthew Miller, an equity analyst with CFRA Research.
Freeport-McMoRan reported Q2 earnings of 3 cents per share on a net income of $53 million. Analysts had expected a loss for the quarter, which was marked by a round of dramatic cost-cutting as the company responded to the onset of the coronavirus pandemic.