Freeport-McMoRan (NYSE:FCX) had its "Overweight/Top Pick" rating maintained on them by FBR Capital, citing what they believe is the sustainability of higher copper prices.
They see Freeport far exceeding consensus in the third quarter.
FBR said, "Despite the macro uncertainty throughout the summer months, we have remained confident in our long-held bullish copper thesis. In our opinion, there remains too much skepticism regarding the sustainability of high copper prices. We believe FCX's current valuation is discounting copper prices below $3 per pound versus the current price of $3.69 per pound. We believe investors need to start thinking 'outside the box' and consider the possibility of copper prices above $5 per pound for an extended period of time."
Like with most commodities going forward, prices will be determined by key emerging market players building up their infrastructure. How they go will be how commodity prices go, including copper.
It looks like emerging market growth should do well in the years ahead, so it's possible copper prices will be sustainable, although at what levels is debatable.
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