UPDATE: Stifel Downgrades Freeport-McMoran

Earlier Thursday morning, Stifel analyst Paul Massoud downgraded shares of Freeport-McMoran FCX from Buy to Hold and set a price target of $37.

Massoud began by acknowledging that the recent Memorandum of Understanding between Freeport and the Indonesian government is a step in the right direction. However, he feels this has been largely anticipated by the Street as the stock has traded up ~18 percent since a low in March.

Looking forward, Massoud said there are still concerns regarding mine ownership and permits beyond 2021. He also noted the company is likely to pursue asset sales in an effort to reduce debt.

Massoud has lowered his EPS estimate from $0.81 to $0.58 for the third quarter of 2014, and his full-year estimate from $2.75 to $2.45.