Why Freeport-McMoRan Surged Higher in November
Shares in copper miner Freeport-McMoRan (NYSE: FCX) rose 10.5% in November, according to data provided by S&P Global Market Intelligence. The move comes after some positive newsflow for the company encouraged investors to be more optimistic about the company's near-, medium-, and long-term prospects.
First, the price of copper trended upward in November. Having started the month at $3.65 per pound, it finished the month closer to $3.82 per pound. While that might not seem a significant move, management outlines that a $0.10 change in the price of copper impacts $425 million in its earnings before interest, taxation, depreciation, and amortization (EBITDA) in 2024/2025.
Second, copper is seen as one of the most economically sensitive industrial metals. As such, the decline in market interest rates over the last month (following some better news on the inflation front) has encouraged investors to raise expectations for economic growth. That's good news for copper demand, as it is a metal widely used in everything from electrical networking to construction, consumer products, industrial machinery, and construction.
Source Fool.com
Freeport-McMoRan Inc. Stock
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On the other hand, the target price of 62 € is below the current price of 62.58 € for Freeport-McMoRan Inc., so the potential is actually -0.93%.
