Citigroup (NYSE:C) Drops Freeport (NYSE:FCX) from "Top Picks Live" List

Citigroup (NYSE:C) cut Freeport-McMoRan (NYSE:FCX) from its "Top Picks Live" list, citing recent valuation.

Increase in copper and gold prices has pushed the stock up to levels that Citigroup seems to think are unsustainable, as the share price of Freeport drop in response.

Even so, Citi is maintaining a "Buy" on the firm, saying "the company's
growth prospects, discounted valuation relative to copper futures, free
cash generation, and history of capital return."

Without a hedge and heavily exposed to gold and copper, there is also an increased volatility factor to consider.

But having said that, the continuing loss in value of the U.S. dollar could make Freeport one of the higher performing miners.

Freeport closed at $87.23 Monday, falling $1.90, or 2.13 percent. Citi has a price target of $92 on the miner.