Street view: Brokerages cut Freeport's PT on lower production forecast

** Shares of copper miner Freeport-McMoRan FCX.N fall 4.7% to $35.92

** Co on Wednesday declared force majeure at its Grasberg mine in Indonesia and said it is expecting consolidated sales to be lower for copper and gold in the third quarter

REVISED OUTLOOK WORSE THAN EXPECTED

** BMO Capital Markets (cuts PT to $48), says that although a reduction in 2H'25 was expected, "the 35% preliminary cut to 2026 production outlook is an incremental negative, with production at Grasberg not expected to return to pre-incident levels until 2027"

** Raymond James (cuts PT by $9) believes FCX has excellent assets, but also has higher jurisdictional risk given Grasberg is in Indonesia

** JP Morgan (cuts PT by $10) removes stock from its U.S. Equity Analyst Focus List, says impact through next year is worse than expectations

** However, brokerage sees upside in FCX shares "with a higher bias on copper prices" that are likely to be supported by the shortfall in production

** Bernstein (cuts PT to $48.5) says current copper prices are fairly priced, believes FCX can outperform over the next 12 months

** Brokerage lowers PT by $2 but upgrades stock to "outperform" from "market perform"