- Carl Icahn, who revealed an 8.5% stake in downtrodden Freeport McMoRan (FCX +2.7%) late yesterday, is "one of the best instinct investors of all time and often invests at the right point in a cycle,” according to 13D Monitor, and investors appear to agree, sending shares higher and capping a two-day 32% spike.
- "If Icahn wants a board seat, the question is not whether he will get one or not, but how quickly he will get one. When stocks get beaten up like this, it is very easy for an activist to implement its agenda,” 13D Monitor says, noting that Icahn got on the Cheniere Energy board less than three weeks after announcing his active stake.
- Citigroup’s Brian Yu sees potential value creation from divesting the oil and gas business under the right circumstances and deleveraging the balance sheet, effectively undoing the 2013 acquisitions of Plains Exploration & Production and McMoRan Exploration.
- S&P Capital IQ’s Matthew Miller raises his rating on the stock to Hold from Sell which a $12 target price, up from $10, citing Icahn’s stake as well as lower operating and capital costs.
- While the latest round of cost-cutting actions illustrate FCX's ability to manage an increasingly challenging price environment, Deutsche Bank thinks a primary equity raise and/or some monetization of E&P assets are still needed to truly strengthen the balance sheet.