10:57 AM EDT, 10/03/2025 (MT Newswires) -- Freeport-McMoRan ( FCX ) faces an "overly pessimistic" market reaction to recent damage at its Grasberg operations in Indonesia as mining experts see the risk of structural impairment as low, UBS London said Friday in a report.

The mining company's stock has dropped 40% relative to its peers since Freeport declared force majeure at Grasberg last month and cut 2026 Indonesia copper volume by 35%, UBS said.

In a call with UBS, Dr. Kym Morton, a leading mining hydrologist, said she has "absolutely no doubt that Grasberg can get back to full production," calling Freeport's guidance "reasonable" for a full recovery to pre-incident levels by 2027, according to the report.

"We see the risk versus reward as attractive" for Freeport, the report said.

UBS upgraded Freeport's stock to buy from neutral and raised its 12-month price target to $48 from $42.50.

Freeport shares rose 2% in recent Friday trading.

Price: 39.66, Change: +0.79, Percent Change: +2.03