This morning, Deutsche Bank upgraded shares of Freeport McMoRan (NYSE:FCX) from Neutral to Buy as the company has easily beat estimates the past two quarters. The firm believes the revival of the global economy will benefit the mining giant and other analysts will be forced to raise estimates for 2010. Further encouraging news came from the company's reinstatement of the dividend, which will start at the annual rate of sixty cents per share. Analysts at Deutsche Bank expect the dividend to grow and has set a new price target of $100 per share.
Following the upgrade, shares of FCX were showing strong gains, up almost two percent this morning.
Wells Fargo upgraded the entire Pipeline MLP sector this morning as total returns are expected to be around thirteen percent for the sector in 2010. This estimate targets a yield of about eight percent and distribution growth of 2.8%. In the sector, Wells Fargo singled out Magellan Midstream Partners (NYSE:MMP) as the firm's top pick, upgrading shares from Market Perform to Outperform.
In morning trading, shares of Magellan Midstream Partners were trading close to flat, gaining just a few pennies despite the upgrade from Wells Fargo.
And Deutsche Bank upgraded shares of Novellus Systems (NASDAQ:NVLS) from Sell to Hold following third quarter earnings. With the results in line with expectations and fourth quarter earnings guidance above Wall Street estimates, the firm is confident that the sector has rebounded well in the second half of the year. Deutsche Bank expects the momentum to continue into 2010 and have raised their price target from $13 per share up to $18.
Shares of Novellus were trading close to flat on the news, as the new price target from Deutsche Bank is still well below the current price.
For MarketNewsVideo.com, I'm Nichole Dossous.
