By Freeport-McMoran Inc (NYSE: FCX) has already soared nearly 40% over the past four months, but a senior Morgan Stanley analyst remains convinced the stock is not out of juice just yet.
According to Carlos De Alba, shares of the mining company could push further to the upside on the Trump administration’s aggressive tariffs on copper imports.
On Monday, De Alba reiterated his “overweight” rating on Freeport-McMoran stock and revealed a $48 price target, indicating potential upside of another 20% from current levels.
Why would Trump tariffs benefit Freeport-McMoran stock?
President Donald Trump slapped a blanket 50% tariff on all copper imports in July, which resulted in a notable pullback in copper stocks in recent weeks.
However, the aforementioned administrative move could actually work in favor of FCX shares, as its copper rod products will become meaningfully more attractive versus imported alternatives moving forward, according to the Morgan Stanley analyst.
“We expect that Freeport-McMoran will be able to raise pricing in its annual copper rod contracts for 2026, which account for the majority of the company’s North America sales volumes,” De Alba told clients in a research note on Monday.
Plus, Freeport-McMoran stock currently pays a dividend yield of 1.44%, which makes it all the more attractive to own for the long term.
FCX shares offer strong fundamentals and reasonable valuation
Carlos De Alba sees copper rod prices in the US rise by as much as 40% from the first quarter of 2026 to the final quarter of 2028.
Therefore, he sees the recent weakness in FCX stock as “overdone”, and recommends capitalising on it as an opportunity to load up on a quality, well-positioned mining stock at a notable discount.
Fundamental strength was, among other reasons, the Morgan Stanley analyst cited in his research note on Monday. Late last month, the NYSE-listed firm reported its numbers for the second quarter that handily topped Street estimates.
Investors should also note that Freeport-McMoran shares are currently trading at a price-to-sales ratio of about 2.30, which is reasonable for a fast-growing mining company.
Should you load up on Freeport-McMoran shares today?
All in all, with the recently announced copper tariffs reshaping market dynamics, the Phoenix-based Freeport-McMoran Inc. stands to benefit from stronger pricing power and domestic demand.
Backed by solid fundamentals, a reasonable P/S ratio, and a bullish outlook for the next three years, Morgan Stanley’s Carlos De Alba dubs the recent pullback in FCX shares a buying opportunity.
Note that Morgan Stanley is actually among some of the more conservative Wall Street firms on Freeport-McMoran shares.
According to the Wall Street Journal, the consensus rating on this mining company currently stands at “overweight” with the mean target of roughly $52, indicating potential upside of nearly 30% from here.
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