UPDATE: Bank Of America Upgrades Freeport-McMoRan Inc On Compelling Risk-Reward Profile

In a report published Tuesday, Bank of America analyst Oscar Cabrera upgraded the rating on

from Neutral to Buy, and reiterated the $40.00 price target. In the report, Bank of America noted, “We believe FCX offers a compelling risk-reward profile with the company's 1) improving FCF profile 2) sales growth of 35% for copper and 18% for O&G over the next 3 years, resulting in EBITDA growth of +80% 3) best in class operating execution 4) world class brownfield expansions with below avg. development costs and 5) high dividend yield. In our view, the upside more than offsets the risk associated with the ongoing negotiations contract of work negotiations with the Government of Indonesia.” Freeport-McMoRan Inc closed on Monday at $32.40.