Freeport-McMoRan Surges on Citi Upgrade, Bullish Copper Outlook
Shares jump over 5% as analysts see copper hitting $12,000 by 2026 amid a deepening supply deficit and strong demand from the energy transition.
Shares of Freeport-McMoRan (FCX), one of the world's largest copper producers, surged more than 5% after Citigroup upgraded the stock on a strengthening outlook for the industrial metal. The bank's analysts raised their rating on the mining giant from 'Neutral' to 'Buy', citing a powerful combination of tightening supply and robust long-term demand.
The upgrade is anchored by a bullish forecast for the underlying commodity. In its note, Citigroup , a significant increase from current levels. This optimism stems from what many analysts now see as an impending structural deficit, where global demand for copper is set to systematically outstrip new supply for years to come.
Citigroup is not alone in its positive assessment. The move follows similar upgrades from other Wall Street firms, including UBS and BofA Securities, who also recently moved their ratings to 'Buy'. According to GuruFocus, Citigroup analyst Alexander Hacking , suggesting considerable upside from its current trading price.
The core of the bull case rests on a constrained supply chain. The market is facing a , exacerbated by recent and ongoing mine disruptions. Key operations, including the shutdown of the Cobre Panama mine and production challenges at other major sites, have removed significant volume from the market. These issues are compounded by the long lead times—often a decade or more—required to develop new mining projects.
Simultaneously, demand for copper is accelerating, driven largely by the global transition to green energy. The metal is a critical component in electric vehicles, grid-scale energy storage, and renewable power infrastructure like wind and solar farms. This secular trend is creating a new, sustained demand base that existing and planned production may struggle to meet.
As a leading producer with significant assets, including the massive Grasberg mine in Indonesia, Freeport-McMoRan is uniquely positioned to capitalize on higher copper prices. While the industry faces operational challenges, the favorable supply-demand dynamics provide a strong tailwind for the company's profitability and stock performance moving forward.