Deutsche Bank Weighs In on Freeport-McMoRan Inc (FCX) and NXP Semiconductors NV (NXPI) Following Earnings Announcements

Deutsche Bank analysts are out today with some quick thoughts on energy and mining firm Freeport-McMoRan Inc (NYSE:FCX) and Dutch chip maker NXP Semiconductors NV (NASDAQ:NXPI), following recent earnings announcements.

Freeport-McMoRan Inc

Deutsche Bank analyst Jorge Beristain reiterated a Hold rating on shares of Freeport-McMoRan, while reducing the price target to $6 (from $7), which implies an upside of 6% from current levels.

Beristain explained, “Post-4Q15 results, our EBITDA estimates for 2016/17 cut by 14%/2% as lower DB oil price deck, more-than-offsets “latest” management guidance on lower costs and capex. All-in, we find our estimated Net Present Value reduced to $8 (from $9 prior), leading us to trim again PT to $6 (from $7) based on 0.8x NPV multiple (0.7x prior) which assumes further dilution. Hold maintained given downside of $3/sh to our NPV if spot oi l prices persist, highly levered BS and uncertainty around timing/execution of disposals (Freeport targeting $5-10bn of debt reduction). Recent Moody’s credit downgrade by 4-notches with a negative outlook stresses need to make good on promised asset sales.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jorge Beristain has a yearly average return of -11.7% and a 31% success rate. Beristain has a -15.5% average return when recommending FCX, and is ranked #3522 out of 3612 analysts.

Out of the 10 analysts polled by TipRanks, 3 rate Freeport-McMoRan stock a Buy, 6 rate the stock a Hold and 1 recommends a Sell. With a return potential of 67%, the stock’s consensus target price stands at $9.44.

NXP Semiconductors NV

In addition, Deutsche Bank’s Ross Seymore reiterated a Buy rating on shares of NXP Semiconductors, with a price target of $110, after the company delivered 4Q15 sales/EPS of $1.61B/$1.25, ahead of the Street’s $1.54B/$1.02 estimates on better GM and OM. 1Q results were guided up 38%, at mid-point, to $2.21B/$1.10, roughly in line with the Street’s $2.25B/$1.08E. The stock reacted to the news, rising nearly 8% in mid-day trading.

Seymore commented, “After providing a surprisingly poor 4Q guide, NXPI appears to be back on track with a solid 4Q report & 1Q guide. We continue to see significant upside to NXPI shares as stabilizing revenue, accelerating cost cuts and debt reduction create EPS and FCF upside. Key questions for the conference call on 2/4/16 at 8am ET include segment demand trends (especially in Auto), channel inventory levels and cost synergy progress/target updates.”

According to, analyst Ross Seymore has a yearly average return of 15.3% and a 58% success rate. Seymore has a 8% average return when recommending NXPI, and is ranked #73 out of 3612 analysts.


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