Freeport-McMoRan Inc (NYSE:FCX) shares on Wednesday surged almost 7.6%, hitting a session peak of $14.84 in spite of few warnings by experts that the stock has surged too far.
In just the first two trading sessions of 2017, Freeport stock has by now surged nearly 13%, in contrast with a 1.43% hike in the S&P 500 (SPX) index. Freeport’s start-booster comes on the heels of its share price almost surging twofold in last year. The Arizona-located copper producer is considered as a best growth candidate for 2017, courtesy to the potential economic and political catalysts under President-elect Donald Trump’s administration.
On Tuesday, the firm declared that it had sold off two further oil and gas assets (Wyoming gas fields and CO2 production assets) to Australia’s Elk Petroleum Limited (EKPTF), producing some $20 million in returns. The asset sale, which is focused at enhancing Freeport’s cash position and lowering debt, provoked Jefferies experts to reiterate their Buy recommendation on the stock. But not everyone is rejoicing Freeport’s achievement.
The firm lately got a Sell rating by experts at Berenberg, who downgraded the stock from Hold. Mentioning sluggish copper prices, Berenberg sliced its Freeport price target to $10.90. shares of Freeport wrapped up Wednesday at $14.83, which shows that Berenberg observes nearly a 27% shortage from present levels. The robust approach in the stock has forced experts toward the watchful side. The stock held a consensus Hold rating and an average 12-month price target of $13, which implies a shortage of 13% .
But, shares have recovered robustly this week and at Wednesday’s settle were higher than over 12% as compared to previous week’s low, at end to $15.