- Freeport McMoRan (FCX -0.2%) is upgraded to Buy from Neutral with a $20 price target, raised from $17, at B. Riley FBR, as Rio Tinto's reported $3.5B deal with Indonesia for its interest in the Grasberg copper and gold mine sets an "attractive valuation marker" for FCX.
- The firm estimates a $3.5B valuation for Rio's 40% interest would imply a valuation of $10B-$11B for PT-FI on a 100% basis, substantially above what the market has implied for the assets most recently.
- Overall, B. Riley believes FCX offers greater risk than reward in light of yesterday's development and suggests buying shares at current levels.