As previously reported, Morgan Stanley downgraded Freeport McMoRan to Underweight from Equal Weight. Analyst Evan Kurtz said risk/reward is skewed to the downside as the stock is now pricing in $2.75/lb copper, above the firm's $2.43 average over the next 3 years. The analyst believes further copper asset sales will struggle to push shares higher and said copper needs to be closer to $3/lb for the company to be able to de-lever further and pursue Grasberg mine extension capex. Kurtz lowered his price target on Freeport shares to $7 from $9 primarily due to the Gulf of Mexico asset sale.