Goldman Sachs Says Buy Freeport McMoran

Goldman Sachs is out with a research report and says to buy Freeport McMoran Copper & Gold (NYSE: FCX).

In the note, Goldman writes, "We believe the recent pullback in metals & mining stocks has created a particularly attractive entry point for select names. We remain very bullish on copper fundamentals and recommend investors continue to buy FCX. Although we are not as bullish on aluminum as copper, we prefer AA as we see the delinking of alumina-aluminum prices and AA's aerospace exposure as strong earnings drivers over coming years. We are upgrading CENX to Neutral was Sell as the stock now appears fairly valued. We are also lowering our aluminum price forecast and estimates for AA, CENX and NOR. We are also lowering our PT multiples across our covered stocks to reflect the higher risk premium the market is applying, thus lowering PTs on average 21%."

Shares of FCX gained 80 cents yesterday to close at $46.61.