11:10 AM EDT, 08/11/2025 (MT Newswires) -- Freeport-McMoRan ( FCX ) will likely benefit from Section 232 copper tariffs and may be able to raise prices in its annual copper rod contracts for 2026, which represent most of its North America sales volumes, Morgan Stanley said in a note Monday.

The company "should benefit from hefty tariff protections as the US is a net importer of copper rod," the note said, adding that price hikes will likely begin in 2026 and the company has the capacity to produce up to 1 billion pounds of copper rod in the US.

Morgan Stanley also said the company's stock price is not reflecting the fact that it will "benefit from US copper tariffs while outlook for gold remains positive."

"While we are lowering our estimates and [price target] to account for the fact that US Section 232 tariffs will not extend to copper cathodes, we believe that the recent price reaction in FCX shares is overdone," the note said.

Morgan Stanley upgraded Freeport-McMoRan ( FCX ) to overweight from equalweight, while trimming the price target to $48 from $54.

Price: 41.52, Change: -0.35, Percent Change: -0.85