Citi Expects Upside Surprise From Freeport-McMoRan (FCX)

Citi Investment Research expects upside surprise in earnings from Freeport-McMoRan Copper & Gold Inc. FCX on sharply higher copper prices. It has a Buy rating on shares, to go along with a $92 price target. In a research sent to clients, Citi writes, "Following the 3Q surge in copper prices, we estimate that FCX will post $2.20 vs consensus of $2.12, on an average copper realization of $3.47/lb that reflects benefits from provisionally priced sales. Our model assumes consolidated copper sales of 982 mln lbs and site production and delivery costs of $1.43/lb. Copper remains our favorite base metal." Shares of FCX lost 94 cents on Friday to close at $98.05, a loss of nearly 1%.