Bank of America (BAC) is too bearish on Freeport-McMoRan (FCX). Thebank downgraded the company on October 17 and set an $8 price target, citing macro weaknesses.BoFA Merrill Lynch discounted FCX’s balance sheet improvement while weighing on the weak outlook for copper. In reality, forecasting the future price of copper is nearly impossible. If the metal’s price does weaken, then downgrading FCX is justified. Fortunately, oil prices improved, which would give Freeport’s energy unit a boost. Freeport also has the option to sell assets, which would lighten the debt load.If the company does not sell assets, that would be a better case scenario for FCX shareholders. Management has a response to weaker energy and metal prices, but if markets stabilize, the company may turn its focus to raising output.Iron ore holdsLook no further than Cliffs Natural Resources (CLF) as an example of a company that is holding its value.CLF also faces downward pressure for iron ore prices, but the stock is very cheap at a 13x forward P/E. By comparison, Freeport has a 10x forward P/E. The discount for both companies suggest the downside is priced in these stocks.