Freeport-McMoRan Downgraded at Several Firms Following Acquisition News (FCX)

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International mining company, Freeport-McMoRan Copper & Gold Inc.( FCX ) sees several downgrades on Thursday following Wednesdays reported acquisitions.

Following FCX's report to acquire both Plains Exploration & Production Company( PXP ) and McMoRan Exploration Co.( MMR ) yesterday, several firms are downgrading the company. Many analysts believe that the acquisition will result in too much change in the company's strategies.

Deutsche Bank downgraded FCX from a "Buy" to a "Hold," and has given the company a price target of $40. This price target suggests a 21% increase over the stock's current price of $31.45.

Goldman Sachs reported that they have downgraded the company from a "Buy" to "Neutral," with a price target of $38. This price target would be a 17% increase over the stock's current price.

BMO Capital downgraded FCX to "Market Perform," and have given the company a $30 price target. This price target suggests a slight decline from the stock's current price.

Citigroup also downgraded FCX, lowering the company's rating from a "Buy" to "Neutral," and giving the company a $35 price target. The firms price target suggests a 10% upside to the stock's current price.

Freeport-McMoRan shares were down 68 cents, or -2.11% during premarket trading Thursday. The stock is down -10.67% YTD.
The Bottom Line
Shares of Freeport McMoran ( FCX ) have a 3.89% dividend yield, based on last night's closing stock price of $32.16. The stock has technical support in the $26-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$37 price levels.

Freeport-McMoRan Copper & Gold Inc.( FCX )is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: FCX , MMR , PXP

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