Goldman Sachs Reiterates Buy and PT of $64 on Freeport-McMoRan Copper and Gold

Goldman Sachs reiterated its Buy rating on Freeport-McMoRan Copper and Gold (NYSE: FCX). At the same time, Goldman left its price target on the company's stock unchanged at $64. In a research report published today, Goldman argued that the stocking of copper supplies in China is over and the price of copper should start rising again. Goldman believes the company is in an excellent position to benefit from the change in copper fundamentals.

In the report, Goldman states, "We reiterate our Buy on FCX with a 6-month TP (P/E, EV/EBITDA and NAV driven) of $64 implying 28% upside... We see FCX as the biggest beneficiary from a turn in copper fundamentals. A strong balance sheet and a solid free cash flow stream could provide further upside to FCX stock as the company returns more cash in the form of dividends."

On Friday, FCX added 0.3% to its value to close the week at $49.93.