Here's Why Freeport-McMoRan Stock Soared in September
Shares in copper miner Freeport-McMoRan (NYSE: FCX) rose by 12.7% in September, according to data provided by S&P Global Market Intelligence. The rise came after China announced a series of measures to stimulate its economy in the face of a weakening housing market and pressure on its economic growth target of about 5%.
China's appetite for copper is the swing factor in determining global demand, and the announcement of a raft of monetary stimulus measures (including interest rate cuts, mortgage rate cuts, and reducing banks' reserve requirement ratios) will add liquidity to China's financial system. The measures are also intended to stabilize China's property and construction markets.
All of this is good news for copper demand and Freeport-McMoRan. Indeed, the price of copper started trading in September at around $4 per pound and ended at around $4.42 per pound. For an example of what that means to Freeport-McMoRan, management argues that all things being equal, the company will generate earnings before interest, taxes, depreciation, and amortization (EBITDA) of $11 billion in 2025/2026 based on a price of copper of $4 per pound, rising to $13 billion at a price of $4.50.
Source Fool.com
Freeport-McMoRan Inc. Stock
With 17 Buy predictions and not the single Sell prediction the community is currently very high on Freeport-McMoRan Inc..
With a target price of 50 € there is a slightly positive potential of 8.58% for Freeport-McMoRan Inc. compared to the current price of 46.05 €.
