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Tuesday Morning Pre-Market Insights: Apple Inc. (AAPL), Linn Energy LLC (LINE), Freeport-McMoRan Inc (FCX)

By Kate George

Apple Inc. (NASDAQ:AAPL) is down 2.12% to $110.37 due to China’s faltering economy, the effect of which is rippling around the world. Asian, European, and American markets are down this week. A few weeks ago, investors were cautiously optimistic that the Chinese economy would make a recovery thanks to emergency measures put in place by the government. At this point, it seems that investors’ hopes of a rebound have been crushed as the Chinese economy continues to slip. Today, China released its monthly metric of factory production, revealing that it fell to a three-year low in August. Analysts voiced that some of the slowdown may be temporary, pointing to China’s recent efforts to decrease air pollution, but acknowledged the underlying cause of the slowing markets. According to the 34 analysts polled by TipRanks in the last 3 months, 25 are bullish on Apple, 8 are neutral, and 1 is bearish. The average 12-month price target on the stock is $148.86, marking a 32% potential upside from where shares last closed.

Linn Energy LLC (NASDAQ:LINE) is down 5.13% in pre-market trading to $3.33 as oil prices fell thanks to China’s slowing manufacturing data. In a factory report for the month of August released today, data showed that Chinese manufacturing reached a three-year low. Although some of the slowdown may be temporary due to recent pollution control measures, the underlying cause is related to the economic slowdown. China is the second-largest consumer of oil on a global scale and consequently, Brent crude oil and U.S. crude fell. Even though the U.S. is experiencing lower production levels, a global oversupply has contributed to the stunted cost of oil over the past year. According to the 6 analysts polled by TipRanks over the last 3 months, 2 are bullish on LINE, 2 are bearish, and 2 are neutral. The average 12-month price target on the stock is $5.83, marking a 66% potential upside from where shares last closed.

Freeport-McMoRan Inc (NYSE:FCX) is down more than 5% in pre-market trading to $10.09 after analyst Brian Yu of Citigroup downgraded the copper and gold company from Buy to Neutral and cut his price target from $20 to $12. Yu downgraded the stock because he believes the pricing environment is unappealing and consequently, the risk/reward scenario is not as compelling as it once was. Yu’s analysis shows that peers of FCX will not limit copper supply despite the price slump, having fallen 20% so far in 2015. According to the 6 analysts polled by TipRanks in the last 3 months, 5 are bullish on FCX and 1 analyst is neutral. The average 12-month price target on the stock is $18, marking a 69% potential upside from where shares last closed.

Click here to view Brian Yu’s rating history and performance.