Jefferies has upheld its Buy rating on Freeport-McMoRan (NYSE: FCX) stock accompanied by a maintained price objective of $68. The investment firm bases its positive stance on expectations that Freeport-McMoRan’s Grasberg mine will resume full capacity by the conclusion of 2027, setting a foundation for sustained growth.
In its recent fourth-quarter 2025 financial disclosures, Freeport-McMoRan reported an adjusted EBITDA of $2.03 billion. This result notably surpassed Jefferies' own forecast of $1.64 billion and consensus estimates, which stood at $1.49 billion. Copper sales volume achieved 0.7 billion pounds, exceeding the earlier guidance of 0.6 billion pounds.
The company also demonstrated strong operational efficiency, posting C1 cash costs at $2.22 per pound, below the anticipated $2.47 per pound. This cost advantage is expected to further improve during the subsequent year as ramp-up activities at the Grasberg site progress.
Jefferies pointed out that Freeport-McMoRan's latest guidance for copper sales and capital expenditures through 2028 was slightly less encouraging compared with the investment firm's internal models. Nevertheless, they view the revised production targets as attainable with room for potential outperformance.
Recognizing Freeport-McMoRan as a prime investment choice within the global mining industry, Jefferies anticipates that the stock will benefit from enhanced profitability and a broadening of equity valuation as production operations normalize and expand.
Additional confirmation of Freeport-McMoRan's solid performance comes from recent reports of its fourth-quarter 2025 earnings, where the company surpassed both BofA Securities and market consensus expectations on adjusted EBITDA. The earnings beat was driven by a combination of increased sales volumes, reduced operating expenses, and advantageous provisional copper pricing during the period. Following this, BofA Securities reiterated a Buy recommendation and preserved their $68 price target on Freeport-McMoRan shares.
Freeport-McMoRan is intensively engaged in restoring full capacity at its Grasberg mine following a recent operational incident. The company forecasts recovering approximately 85% of production by the latter half of this year. CEO Kathleen Quirk characterized the incident as 'humbling' and reaffirmed the company’s commitment to reinstating operations safely and sustainably. She further emphasized significant projected growth in copper demand driven notably by developments in artificial intelligence, compensating for weaker demand from other sectors.
These elements illustrate Freeport-McMoRan's strategic focus on stability and growth amid operational challenges and evolving market dynamics.