Copper Shortages Signal Bright Future For Freeport-McMoRan, Alcoa, Buenaventura: Morgan Stanley
Portfolio Pulse from Surbhi Jain
Morgan Stanley analyst Carlos De Alba has upgraded Freeport-McMoRan Inc (NYSE:FCX), Alcoa Corp (NYSE:AA), and Compañía de Minas Buenaventura SAA (NYSE:BVN) to Overweight due to persistent copper supply challenges and positive developments within these companies. The upgrades are based on expected higher prices for copper, gold, and alumina, as well as operational improvements and strategic investments.
June 21, 2024 | 6:10 pm
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POSITIVE IMPACT
Alcoa is upgraded to Overweight due to a tighter bauxite and alumina market. The company's productivity measures aim to boost EBITDA by ~$645 million annually by 2025, with a price target of $50 indicating a 30% upside.
The upgrade to Overweight and the 30% upside to a $50 price target indicate strong positive sentiment. The tighter bauxite and alumina market and productivity measures support this outlook.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Buenaventura is upgraded to Overweight due to operational improvements and Antofagasta's strategic investment. Gains at silver mines Uchuchacua and Yumpag, along with higher gold and silver prices, will reduce leverage concerns. The price target is raised to $21, indicating a 20% upside.
The upgrade to Overweight and the 20% upside to a $21 price target indicate positive sentiment. Operational improvements and higher gold and silver prices support this outlook.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Freeport-McMoRan is upgraded to Overweight by Morgan Stanley, with a 26% upside to a $62 price target. The company is expected to benefit from higher copper and gold prices, supported by the delivery of the PT-FI smelter and the expected Grasberg mine agreement extension.
The upgrade to Overweight and the 26% upside to a $62 price target indicate strong positive sentiment. Higher copper and gold prices, along with strategic developments, support this outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100