Freeport-McMoRan’s Estimates Cut at Deutsche Bank (FCX)

By Staff,

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Copper producing giant Freeport-McMoRan Copper & Gold Inc. ( FCX ) saw its earnings estimates lowered on Wendesday by analysts at Deutsche Bank.

The firm maintained its "Hold" rating on FCX, but lowered its estimates for the company due to weakening copper prices. Deutsche Bank noted that "as copper goes, so do earnings."

The analyst commented, "We now look for 2Q10 EPS of US$1.31, 28% lower than prior estimates of US$1.81 and 34% lower QoQ. Revised 2Q10 EPS now 17% below Bloomberg consensus of US$1.59. While FCX share price has entered attractive territory, we are concerned that near-term earnings weakness could impede sustained rally and await better entry."

Freeport-McMoRan shares rose $1.27, or +2.1%, in premarket trading Wednesday.

The Bottom Line
We had removed shares of FCX from our recommended list last Sept. 2, when the stock was trading at $89.32. The company has a .98% dividend yield, based on last night's closing stock price of $61.48.The stock has technical support in the $55-$56 price area. If the shares can firm up, we see overhead resistance around the $65-$67 price levels. We would remain on the sidelines for now.

Freeport-McMoRan Copper & Gold Inc. ( FCX ) is not recommended at this time, holding a DARS™ Rating of 3.2 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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: FCX

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