Analysts Are Bullish on These Materials Stocks: FDC, FCX

By Austin Angelo

There’s a lot to be optimistic about in the Materials sector as 3 analysts just weighed in on First Data Corp (NYSE: FDC), Freeport-McMoRan (NYSE: FCX) and Noble Energy (NYSE: NBL) with bullish sentiments.

First Data Corp (NYSE: FDC)

Jefferies analyst Jason Kupferberg reiterated a Buy rating on First Data Corp (NYSE: FDC) yesterday and set a price target of $16.50. The company’s shares closed yesterday at $15.15.

Kupferberg noted:

“Earlier, FDC hosted its first post-IPO Analyst Day. Key takeaways: 1) revenue growth is accelerating, with N. America GBS representing the most significant opportunity for improvement, 2) operating leverage will continue, 3) robust FCF supports de-leveraging, 4) management’s intense focus on execution is palpable, 5) FDC has become a much more technology-centric enterprise. Guidance for 2017 and beyond was in line.”

According to TipRanks.com, Kupferberg is a 5-star analyst with an average return of 9.4% and a 67.5% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Automatic Data Processing, Fidelity National Info, and Science Applications.

Currently, the analyst consensus on First Data Corp is Strong Buy and the average price target is $16.10, representing a 6.3% upside.

In a report issued on November 1, Oppenheimer also reiterated a Buy rating on the stock with a $16 price target.
Freeport-McMoRan (NYSE: FCX)

In a report released yesterday, Chris LaFemina from Jefferies reiterated a Buy rating on Freeport-McMoRan (NYSE: FCX), with a price target of $16. The company’s shares closed yesterday at $13.80, close to its 52-week high of $14.26.

LaFemina wrote:

“Freeport announced after the market close that it has completed the sale of its 56% stake in the Tenke Fungurume copper mine in the DRC to China Molybdenum for $2.65bn. An additional $120mn in contingent consideration could also be due to FCX if certain commodity price conditions are met during 2018 and 2019. Proceeds from this sale will be used to pay down debt.”

According to TipRanks.com, LaFemina is ranked 0 out of 5 stars with an average return of -13.6% and a 42.2% success rate. LaFemina covers the Basic Materials sector, focusing on stocks such as Randgold Resources Limited, Anglogold Ashanti Ltd, and Peabody Energy Corp.

Freeport-McMoRan has an analyst consensus of Hold, with a price target consensus of $15.

Noble Energy (NYSE: NBL)

In a report released today, Jon Wolff from Jefferies reiterated a Buy rating on Noble Energy (NYSE: NBL), with a price target of $46. The company’s shares closed yesterday at $36.61, close to its 52-week high of $38.62.

Wolff noted:

“NBL management hosted an investor call which detailed long-term growth and gave initial production/capex guidance for 2017. NBL guided to an overall portfolio growth CAGR of 8-12% that is internally funded and generated by existing assets in the US onshore and Eastern Mediterranean. We continue to favor NBL for its returns-based, capital efficient model.”

According to TipRanks.com, Wolff is a 4-star analyst with an average return of 3.0% and a 52.1% success rate. Wolff covers the Basic Materials sector, focusing on stocks such as Continental Resources, Gulfport Energy Corp., and Range Resources Corp.

Currently, the analyst consensus on Noble Energy is Strong Buy and the average price target is $44, representing a 20.2% upside.

In a report issued on November 3, Barclays also reiterated a Buy rating on the stock with a $44 price target.