Boston, MA 09/24/2014 (wallstreetpr) – Natural resources company, Freeport-McMoRan Inc (NYSE:FCX) continued to witness its shares being downgraded by different brokerages citing copper inventory amidst slowing china economy. At least two analysts’ have downgraded the company’s shares in the current month of September.
Downgraded Shares
Tigress Financial Partners analyst, Ivan Feinseth, slashed its rating of Freeport-McMoRan shares to Neutral from a Strong Buy rating, Benzinga reported. The downgrade indicated more than a notch point. The brokerage cited slowing economic and the excessive inventory of copper for downgrading the shares of the company.
The analyst also said that Freeport-McMoRan was also facing difficulties with the government of Indonesia over its long-controversial Grassburg copper and gold mine posing additional risk. Freeport-McMoRan Inc (NYSE:FCX) was sitting at 14,000 feet in Oceania’s remote shadow, the Carztensz Pyramid. It had to face a different kind of risk including guerilla attacks, environmental damage, labor strikes, and alleged increasing corruption after its mining activity commenced in the 1970s there.
Freeport-McMoRan Inc (NYSE:FCX) also faced production cuts in Indonesia and has resumed metal exports only recently from the country after a gap of seven-month since the domestic government’s new rules stipulated domestic processing.
Therefore, the analyst said that he preferred exposure to commodities producers in less risky neighborhoods. He added that he preferred companies, whose commodities prices were witnessing an uptrend and nixes copper along with oil, the area where Freeport-McMoRan Inc (NYSE:FCX) wanted to diversify.
Other Brokerage
In September alone, there was another brokerage, which has downgraded the shares of Freeport. Earlier this month, Morgan Stanley (NYSE:MS) has downgraded Freeport-McMoRan Inc (NYSE:FCX) shares to Equity Weight from Overweight rating and kept a price objective of $41. Its analyst Paretosh Misra said that Freeport shares would continue to fall in line with the falling copper values and an increase in copper inventory. He also pointed out the uncertainty prevailing in Indonesia for mining companies.
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