Great news. Respect to Froome for not doing what would probably give the team more money and more media attention but instead going for the race which would probably make him a modern age legend. Even if he only wins the giro (and although I also don't think he is the outstanding favorite I'm still convinced he is the favorite) he would have won 3 gt's in a row? When was the last time someone did that. Moreover he would join the small list of riders who have won all three gt's and if he really goes on the win the double that would probably make him the rider of the millennium so far.
That said, I really don't think he is the favorite to win the tour. He hasn't been dominant on climbs since 2015 and if he is just that little bit worse (likely considering he'll have the giro in his legs) while his rivals are just a little bit better (which seems likely considering he will face Porte, Dumoulin a hopefully back at his best Quintana and Nibali) I don't think he will win.
That said, I really don't think he is the favorite to win the tour. He hasn't been dominant on climbs since 2015 and if he is just that little bit worse (likely considering he'll have the giro in his legs) while his rivals are just a little bit better (which seems likely considering he will face Porte, Dumoulin a hopefully back at his best Quintana and Nibali) I don't think he will win.