Erste Group has initiated coverage of Freeport-McMoRan Inc. (NYSE: FCX) with a buy rating, citing expectations for revenue and profit growth to outpace sector averages over the next two years.
Analyst Hans Engel highlighted a $7.03 billion revenue estimate for the second quarter of 2026, exceeding the $6.71 billion consensus by 4.8%, alongside adjusted earnings of $0.74 per share, 25.4% above the $0.59 forecast. Operating cash flow for 2026 is projected at $8.3 billion, based on conservative assumptions for copper and gold prices.
The stock, trading at $79.11, remains near its 52-week high of $80.24 and has delivered an 82% return over the past year. Erste Group’s valuation assessment notes a PEG ratio of 0.71, suggesting a reasonable growth-adjusted valuation despite InvestingPro data indicating the stock is trading above its fair value.
Production volumes for copper and gold are expected to decline in 2026 due to phased ramp-up at the company’s Indonesian operations. Molybdenum output, primarily a byproduct of open-pit mining in the Americas, is anticipated to remain stable.
Shares fell in premarket trading despite the earnings beat, as investors weighed concerns over increased capital spending, project timing adjustments, and mixed operational outlooks for certain assets.
