{"id":41460,"date":"2025-07-10T11:36:57","date_gmt":"2025-07-10T11:36:57","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/10\/freeport-mcmoran-shares-rise-on-trumps-50-copper-tariffs-why-is-it-a-top-pick\/"},"modified":"2025-07-10T11:36:57","modified_gmt":"2025-07-10T11:36:57","slug":"freeport-mcmoran-shares-rise-on-trumps-50-copper-tariffs-why-is-it-a-top-pick","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/10\/freeport-mcmoran-shares-rise-on-trumps-50-copper-tariffs-why-is-it-a-top-pick\/","title":{"rendered":"Freeport-McMoRan shares rise on Trump\u2019s 50% copper tariffs: why is it a \u2018top pick\u2019"},"content":{"rendered":"
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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<\/a> announced by former President Donald Trump.<\/p>\n

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

JPMorgan analysts added further momentum to the stock, calling Freeport-McMoRan their \u201ctop pick\u201d for copper exposure in a new research note. <\/p>\n

The bank raised its price target on the stock to $56 from $42, reflecting nearly 23% upside from its last close.<\/p>\n

Scotiabank too increased its PT to $52 per share from $48, maintaining the stock at ‘sector outperform’.<\/p>\n

Stifel Canada initiated a buy rating on Freeport-McMoRan at $56 PT. <\/p>\n

Trump\u2019s national security case for copper<\/h2>\n

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.<\/p>\n

\u201cCopper 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,\u201d Trump wrote. <\/p>\n

He described copper as the second-most-used material by the US Department of Defense.<\/p>\n

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

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.<\/p>\n

Copper prices spike in the US, creating global divergence<\/h2>\n

Copper futures rose 2.62% on Wednesday<\/a>, extending gains from a dramatic 13.12% surge the previous session\u2014its largest single-day increase since 1989. <\/p>\n

However, global pricing dynamics revealed a widening disconnect.<\/p>\n

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

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.<\/p>\n

The US imports nearly half the copper it consumes, most of it from Chile. <\/p>\n

Trump\u2019s tariff move is likely to create both short-term supply pressures and long-term investment shifts in the domestic mining sector.<\/p>\n

Why are analysts bullish on Freeport-McMoRan?<\/h2>\n

JPMorgan\u2019s bullish call on Freeport-McMoRan centers on its strategic position and operational efficiency. <\/p>\n

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.”<\/p>\n

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. <\/p>\n

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\u2019s projections.<\/p>\n

Gold production, estimated at 1.6 million ounces in 2025, provides an additional revenue stream that supports financial stability. <\/p>\n

The company\u2019s debt-to-equity ratio of 0.30 underscores its disciplined capital structure.<\/p>\n

Should you buy FCX?<\/h2>\n

While copper remains a volatile commodity, analysts remain optimistic about Freeport-McMoRan\u2019s fundamentals. <\/p>\n

MarketBeat cited the miner\u2019s low-cost operations and strategic market position as key factors that underpin its blue-chip status.<\/p>\n

“While all mining stocks carry inherent risks tied to commodity price volatility, Freeport-McMoRan\u2019s mix of market leadership, cost discipline, and financial fortitude makes it a premier blue-chip company,” MarketBeat said.<\/p>\n

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.<\/p>\n

Still, experts caution that building new mining capacity in the US will take time and sustained policy support. <\/p>\n

Until then, domestic consumers may face higher input costs as global markets adjust to US trade policies.<\/p>\n

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

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

<\/p>\n","protected":false},"excerpt":{"rendered":"

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 <\/p>\n","protected":false},"author":1,"featured_media":41461,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-41460","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41460"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41460\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41461"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}