Freeport downgraded at FBR as MLP upside potential now seems limited


It's time to take profits in Freeport McMoRan (FCX +0.2%) after a strong six-month run, FBR Capital says in downgrading shares to Market Perform from Outperform.

While investors are excited at the possibility of an MLP of FCX's California oil and gas assets, the firm believes proceeds ($5.3B-$6B) may not be enough to support expanded valuation and giving up diversified exposure, which was one of the rationales for the acquisition of the assets.

FBR sees Southern Copper (SCCO +2.1%) as a better bet now; it thinks most of the production growth/dividend cut risk now has been priced in, valuation has become more attractive, and SCCO should restart work on its troubled Tia Maria project by March.

From other sites
Comments (7)
  • lsuavecito
    , contributor
    Comments (2536) | Send Message
     
    Hmmm, we know what/who FCX is; what/who is FBR?
    14 Jan 2014, 01:15 PM Reply Like
  • VeroMike
    , contributor
    Comments (264) | Send Message
     
    Brokerage firm.
    14 Jan 2014, 02:03 PM Reply Like
  • VeroMike
    , contributor
    Comments (264) | Send Message
     
    investment banking firm formerly known as Friedman, Billings, Ramsey & Co.
    14 Jan 2014, 02:08 PM Reply Like
  • Total Return Investor
    , contributor
    Comments (1364) | Send Message
     
    Apparently FCX didn't get the word. Up .8% now.
    14 Jan 2014, 02:34 PM Reply Like
  • gap123
    , contributor
    Comments (295) | Send Message
     
    Silly. FCx is a no brainer long term hold. Accumulate now
    14 Jan 2014, 03:34 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5156) | Send Message
     
    This is sincerely one of the Weakest and insane "downgrades" that have come out in the last few days.
    Fbr must have business dealings with scco.
    They can have scco meager 1.7% div of $0.48.

     

    I'll take FCX 3.5% and $1.25 div with diversified Growth in a growing energy hungry world.

     

    Really bad try fbr !
    14 Jan 2014, 04:44 PM Reply Like
  • sulo
    , contributor
    Comments (111) | Send Message
     
    This recommendation is lacking and frankly does not make sense.
    15 Jan 2014, 08:30 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs