There has been a lot of action on Wall Street recently with new earnings reports and events. Find out the latest updates from Barclays analysts on mining firm Freeport-McMoRan Inc (NYSE:FCX) and analog chip maker Integrated Device Technology Inc (NASDAQ:IDTI).
Barclays analyst Matthew Korn reiterated an Equal Weight rating on shares of Freeport-McMoRan, while raising the price target to $10.00 (from $9.00), after the company reported first-quarter results last week, posting an adjusted loss per share of $0.16, compared to consensus estimate of a per-share loss of $0.18.
Korn commented, “To the extent that execution, not the Fed, is driving FCX’s performance the market has reason to be pleased with the takeaways from 1Q: Cerro Verde is running well, production costs are trending lower, metal volume guidance remains largely on track (albeit absorbing a small Grasberg mill issue), and the overall strategy of emphasizing the key mining assets while minimizing the drag from O&G keeps moving forward.”
“We see as a positive CEO Richard Adkerson’s enthusiasm on the near-term (i.e. next two months) prospects for divestiture of interests in certain key copper mines, as it affirms that Freeport isn’t using the current strength in the copper price as a reason to back away from aggressive debt reduction. It’s no doubt painful for FCX to do this – Mr. Adkerson said as much on the call – but the company holds a realistic view of what it’s going to take to rebuild its financial strength,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matthew Korn has a yearly average return of 4% and a 55% success rate. Korn has a average return when recommending FCX, and is ranked #1220 out of 3911 analysts.
Out of the 12 analysts polled by TipRanks, 2 rate Freeport-McMoRan stock a Buy, 8 rate the stock a Hold and 2 recommend a Sell. With a downside potential of 27.43%, the stock’s consensus target price stands at $8.73.
Integrated Device Technology Inc
In addition, Barclays’ Blayne Curtis reiterated an Underweight rating on shares of Integrated Device, with a price target of $21, after the company reported solid earnings results for the fiscal fourth quarter, driven by better Consumer and ZMDI Auto/Industrial exposure.
Curtis opined, “From here, we continue to see the Comm and Memory Interface markets growing at a slower pace than in the recent past, and we believe the wireless charging market ($19M in March on GS7 ramp) is a challenging one long-term and likely a headwind in 2H16 as Samsung volumes seasonally decline. Though we don’t see dramatic further downside from these levels, given our end market concerns we believe it will be difficult for IDTI to work in the near term as well. Net net, we see little room for further multiple expansion. That said, a positive Apple content story in 2017 remains a swing factor where we could be wrong, and we will monitor it closely.”
According to TipRanks.com, analyst Blayne Curtis has a yearly average return of 8.8% and a 66.0% success rate. Curtis has an -16.6% average return when recommending IDTI, and is ranked #289 out of 3911 analysts.
Out of the 7 analysts polled by TipRanks, 6 rate Integrated Device Technology stock a Buy, while 1 rates the stock a Sell. With a return potential of 29.5%, the stock’s consensus target price stands at $26.71.