UPDATE 1-Citi ups Freeport to buy, on bullish copper outlook

* Citi raises Freeport to "buy" from "hold"

* Freeport shares climb 3.2 percent

TORONTO, July 8 (Reuters) - Shares of Freeport-McMoRan Copper & Gold Inc (FCX.N) rose 3.2 percent on Wednesday after Citigroup raised its rating on the company, citing a bullish outlook for copper pricing in 2010 and 2011.

Citigroup raised its rating on Freeport to "buy", from "hold", while also increasing its price target on the company's shares to $58 from $53.

The brokerage firm said it expects copper prices to average $2.50 a pound in 2010 and $3 a pound in 2011.

Copper for September delivery HGU9 was down 1.20 cents, or 0.6 percent, at $2.2140 a pound on the New York Mercantile Exchange's COMEX division in morning trade on Wednesday.

"While we continue to expect volatility and potentially weaker copper prices near term, the recent correction in FCX shares coupled with our new commodity outlook leads us to believe that investors should take a fresh look here," said Citigroup analyst Brian Yu, in a note to clients.

Freeport's shares rose $1.44 to $46.44 in early trade on the New York Stock Exchange. (Reporting by Euan Rocha; editing by Peter Galloway)