Citigroup (NYSE:C) Raises Freeport (NYSE:FCX) Guidance

Citigroup Inc. (NYSE:C) increased their guidance for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) for 2010, raising estimates from $7.15 to $7.20.

"Copper remains our favored base metal because of high industry utilization rates, declining exchange inventories, and rising merchant premiums that signal improving demand. As a low cost producer with good execution history, we believe FCX's valuation multiple can re-rate if copper prices average $3.29/lb in 2011 as we expect and the company continues to generate free cash," said Citigroup's Brian Yu.

Freeport is the top pick of Citigroup at this time, which the company affirmed again.

For 2011, the company lowered its outlook, dropping it from $7.90 to $7.50, and also cutting the price target of the miner from $93 to $92.