Freeport-McMoRan (FCX) 'Oversold' - Nomura

Nomura Securities analyst Curt Woodworth reiterated a Buy rating and $38 price target on Freeport-McMoRan (NYSE: FCX) Tuesday, saying shares are oversold.

Woodworth comments, "Freeport is entering a significant growth phase within both mining and oil/gas segments, which should result in meaningful EBITDA growth and deleveraging potential over the 2013-2016 time horizon under most commodity scenarios, in our view."

He continued, "We believe Freeport shares are oversold as we believe copper prices have support near $3.00/lb, as we see demand-side fundamentals as supportive and look for supply to be impacted by reduced scrap availability in 2H 2013. Positioning in the market is very short and as liquidity conditions in China improve we expect copper prices to recover."

The analyst trimmed FY13E EPS from $3.75 to $3.20; FY14E EPS from $4.26 to $4.20.

For an analyst ratings summary and ratings history on Freeport-McMoRan click here. For more ratings news on Freeport-McMoRan click here.

Shares of Freeport-McMoRan closed at $26.82 yesterday.

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