FCX Copper Demand Surge Lifts Price Target to $97

Freeport-McMoRan (FCX), a major copper miner, is experiencing temporary production difficulties and increased costs at its Grasberg mine. This decline in output has had some market impact, but analysts believe it's largely normalized.

The recovery of the Grasberg mine is crucial for restoring profit margins at FCX. The company's valuation stands at 9x EV/EBITDA with a price target of $97 by year-end 2027, indicating a potential 35% upside if Grasberg reaches 70% capacity by then.

The strong demand for copper driven by electrification and disciplined supply supports this optimistic outlook. With free cash flow expected to exceed 10% post-recovery, analysts have assigned a 'buy' rating to the stock.