Freeport-McMoRan rated buy with 35% upside as Grasberg mine recovery boosts copper supply and margins.

Freeport-McMoRan (FCX), a leading copper miner, faces a temporary production dip and higher costs due to an accident at its Grasberg mine. However, the market impact has mostly normalized, and recovery at Grasberg is crucial for restoring profit margins. The company is valued at 9x EV/EBITDA with a price target of $97 by year-end 2027, implying a 35% upside if Grasberg reaches 70% capacity by then. Strong copper demand driven by electrification and disciplined supply supports this positive outlook, leading to a buy rating and expected free cash flow above 10% post-recovery.