Taste Of Capital
  • Politics
  • Investing
  • Business
  • Stock
Home Investing Freeport-McMoRan shares rise on Trump’s 50% copper tariffs: why is it a ‘top pick’
Investing

Freeport-McMoRan shares rise on Trump’s 50% copper tariffs: why is it a ‘top pick’

by admin July 10, 2025
July 10, 2025

Shares of US-based copper giant Freeport-McMoRan climbed 3.75% to $47.30 in premarket trading on Wednesday, as investors reacted to a new 50% tariff on imported copper announced by former President Donald Trump.

The tariff, set to take effect from August 1, is part of a broader push to reshore strategic metals production to the United States.

JPMorgan analysts added further momentum to the stock, calling Freeport-McMoRan their “top pick” for copper exposure in a new research note.

The bank raised its price target on the stock to $56 from $42, reflecting nearly 23% upside from its last close.

Scotiabank too increased its PT to $52 per share from $48, maintaining the stock at ‘sector outperform’.

Stifel Canada initiated a buy rating on Freeport-McMoRan at $56 PT.

Trump’s national security case for copper

In a post on Truth Social, Trump said the tariff decision followed a national security assessment and would ensure adequate domestic supply of a material critical to defense and high-tech infrastructure.

“Copper is necessary for semiconductors, aircraft, ships, ammunition, data centers, lithium-ion batteries, radar systems, missile defense systems, and even hypersonic weapons, of which we are building many,” Trump wrote.

He described copper as the second-most-used material by the US Department of Defense.

The move comes amid an aggressive tariff push by the president, who previously doubled import duties on steel and aluminum in early June.

US Commerce Secretary Howard Lutnick told CNBC that the administration intends to align copper tariffs with other metals and boost domestic production capacity, though he acknowledged the transition will take time.

Copper prices spike in the US, creating global divergence

Copper futures rose 2.62% on Wednesday, extending gains from a dramatic 13.12% surge the previous session—its largest single-day increase since 1989.

However, global pricing dynamics revealed a widening disconnect.

Three-month benchmark copper on the London Metal Exchange fell 1.63% to $9,630.50 per ton in early Singapore trading.

Analysts say the US copper market could soon trade at a $5,000-per-ton premium to global prices, with domestic buyers potentially paying as much as $15,000 per ton by August, compared with around $10,000 globally, according to Benchmark Mineral Intelligence.

The US imports nearly half the copper it consumes, most of it from Chile.

Trump’s tariff move is likely to create both short-term supply pressures and long-term investment shifts in the domestic mining sector.

Why are analysts bullish on Freeport-McMoRan?

JPMorgan’s bullish call on Freeport-McMoRan centers on its strategic position and operational efficiency.

JPM analysts said in a research note that they continue to favour copper within the base metals complex “on expectations of forthcoming supply shortfalls and strong electrification trends globally.”

With 2025 sales guidance of 4.0 billion pounds of copper and net cash costs of $1.65 per pound, Freeport-McMoRan is well-positioned to benefit from rising prices.

A $0.25 per pound increase in copper prices could translate to an estimated $1 billion in additional operating cash flow annually, according to the company’s projections.

Gold production, estimated at 1.6 million ounces in 2025, provides an additional revenue stream that supports financial stability.

The company’s debt-to-equity ratio of 0.30 underscores its disciplined capital structure.

Should you buy FCX?

While copper remains a volatile commodity, analysts remain optimistic about Freeport-McMoRan’s fundamentals.

MarketBeat cited the miner’s low-cost operations and strategic market position as key factors that underpin its blue-chip status.

“While all mining stocks carry inherent risks tied to commodity price volatility, Freeport-McMoRan’s mix of market leadership, cost discipline, and financial fortitude makes it a premier blue-chip company,” MarketBeat said.

The company holds a Moderate Buy consensus rating from Wall Street analysts, and its PEG ratio of 0.84 indicates attractive value relative to projected earnings growth.

Still, experts caution that building new mining capacity in the US will take time and sustained policy support.

Until then, domestic consumers may face higher input costs as global markets adjust to US trade policies.

“For investors looking for direct and meaningful exposure to the long-term copper narrative, FCX presents a compelling, fundamentals-driven case,” said MarketBeat.

The post Freeport-McMoRan shares rise on Trump’s 50% copper tariffs: why is it a ‘top pick’ appeared first on Invezz

previous post
Why Donald Trump’s 50% tariff threat against Brazil isn’t just about trade
next post
Core Scientific deal reveals cracks in CoreWeave’s bull case

Related Posts

Kellogg shares soar 30% on Ferrero deal: what it means...

July 11, 2025

Asian heatwaves drive spot LNG demand, reshaping global flows

July 11, 2025

Tariff turbulence ahead: can airline stocks stay aloft?

July 11, 2025

JPMorgan planning to cut China and India weights in EM...

July 11, 2025

Jane Birkin’s bag sells for $10 million: what makes it...

July 11, 2025

AMD stock: HSBC says it’s catching up to Nvidia –...

July 11, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Stock News

    • Top 4 crypto stocks to buy and hold as Bitcoin enters new era

      July 11, 2025
    • European stocks fall after four-day rally as Trump tariff concerns resurface

      July 11, 2025
    • Jim Cramer names his top 4 stocks that are trading at a big discount

      July 11, 2025
    • Glenmark Pharma hits record high after $2B licensing deal for cancer drug

      July 11, 2025
    • Barrick CEO remains bullish on copper amid US tariff uncertainty

      July 11, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TasteOfCapital.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.
    Copyright © 2025 TasteOfCapital.com All Rights Reserved.

    Taste Of Capital
    • Politics
    • Investing
    • Business
    • Stock