Freeport-McMoRan, Inc. (NYSE:FCX) moved to reset expectations for its flagship Grasberg mine after finishing its investigation into September’s mud-flow incident, issuing lower-than-expected multi-year manufacturing steerage whereas signaling that the worst of the operational overhang is easing.
Scotiabank analyst Orest Wowkodaw upgraded Freeport-McMoRan to Sector Outperform from Sector Carry out after the corporate issued up to date manufacturing and capex steerage for its Indonesian Grasberg mine.
Though the brand new 2026–27 outlook got here in under his prior expectations, Wowkodaw argues that improved multi-year visibility, a powerful steadiness sheet, and enticing medium-term valuation create a positive risk-reward setup.
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He decreased his 12-month value forecast to $47 from $51, explaining that this valuation is derived from a 50/50 mix of seven.5× common 2026E 2027E EV/EBITDA and 1.8× the agency’s 8% NAVPS estimate.
Wowkodaw notes that Freeport accomplished its investigation into the September mud-rush incident that pressured a brief shutdown on the Grasberg Block Cave (GBC), which incorporates roughly half of the district’s reserves.
About 800,000 tonnes of moist materials moved by a number of ranges, damaging infrastructure within the PB1C zone and slowing restoration in PB1S and PB1C.
Whereas the DMLZ and Large Gossan mines restarted in October, Freeport now plans a phased GBC restart starting within the second quarter of 2026 with an extended ramp-up interval.
In response to Wowkodaw, Freeport now expects 2026 output of 1.0B lbs of Copper (Cu) and 0.9M oz of Gold (Au), falling 8% and 14% under his prior forecasts.
Up to date 2027 steerage of 1.5B lbs Cu and 1.2M oz Au is 15% and 19% decrease than beforehand modeled. Nonetheless, 2028–29 estimates stay broadly in line. Moreover, 2026 capex steerage decreased to $4.1B versus his $5.2B estimate, reflecting deferred spending.
Wowkodaw minimize his 2025–27 EBITDA forecasts by roughly 11% yearly and trimmed his 8% NAVPS estimate to $23.04. Even with downward revisions, he highlights FCX’s discounted EV/EBITDA multiples—8.4×, 7.0×, and 5.3×—relative to large-cap copper friends.
Amongst different analyst revisions, Morgan Stanley’s Carlos De Alba maintained his Chubby score on Freeport-McMoRan whereas reducing his value goal from $46 to $44.
Equally, BMO Capital Markets analyst Katja Jancic reiterated her Outperform score and trimmed her value goal from $48 to $47, reflecting up to date assumptions following the corporate’s revised operational outlook.
Value Motion: FCX shares had been buying and selling greater by 3.42% to $41.37 eventually verify Wednesday.
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