Freeport-McMoRan’s Estimates Cut at UBS on Labor Dispute (FCX)

By Staff,

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Copper producer Freeport-McMoRan Copper & Gold Inc. ( FCX ) on Tuesday saw its earnings estimates reduced by analysts at UBS.

UBS said it cut its estimates for FCX through 2012, citing near-term uncertainty stemming from a labor dispute at its Grasberg mine in Indonesia. Workers at that mine recently turned down a 35% wage increase offer.

The firm maintained its "Buy" rating and $52 price target on FCX, however, suggesting a 26% upside to the stock's Monday closing price of $41.26.

Freeport-McMoRan shares rose 59 cents, or +1.5%, in premarket trading Tuesday.

The Bottom Line
Shares of Freeport McMoran ( FCX ) have a 2.42% dividend yield, based on last night's closing stock price of $41.26. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $45 price level.

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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: FCX

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