Proactive Investors - Freeport-McMoRan Inc (NYSE:FCX, ETR:FPMB)’s announcement that Kathleen Quirk will step up to the role of chief executive later this year was welcomed by Jefferies analysts on Wednesday.
“Kathleen is highly regarded internally at Freeport and in the industry,” analysts from the bank said in response to the news, “her promotion to chief executive is a positive”.
Jefferies reiterated a ‘buy’ rating for the mining company as a result, adding it saw shares in Freeport climbing to US$50 - a prospective 24% jump on Tuesday’s close.
Quirk will replace long-serving boss Richard Adkerson in the top role at July’s annual shareholder meeting, Freeport revealed on Tuesday, with the latter remaining with the company as chairman while the leadership transition takes place.
Jefferies noted that the shake up should not see any major short-term shift in Freeport's strategic direction, given the announcement was in line with expectations.
“We would not be surprised if Freeport eventually pivots more to a focus on growth,” analysts said however, “including via mergers and acquisitions”.
Cost reductions and volume growth among the firm’s US operations will be among key challenges for Freeports, analysts added meanwhile.
Growing demand for copper, coupled with supply constraints, should benefit Freeport over the coming years, according to Jefferies.
They said: “The question then is what can Kathleen do to create additional value for shareholders even if the copper price does not rise?”