Citigroup Lowered to “Neutral” at Goldman Sachs Group Inc. (C)
Citigroup (NYSE:C) was downgraded by Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $60.00 target price on the stock, up from their previous target price of $58.00. Goldman Sachs Group Inc.’s target price suggests a potential upside of 15.10% from the company’s current price.
The analysts wrote, “When we upgraded Citi to Buy in 2012 and upgraded it to CL-Buy in January 2013, we had four key drivers of our theses: (1) Citi had the ability to restructure several businesses to improve profitability, (2) the earnings drag from Citi Holdings would abate with time and higher housing prices, (3) its valuation was very attractive with the stock trading at a large discount to tangible book value despite ‘normal’ returns in excess of cost of capital, and (4) over the longer term, Citi was among the banks best positioned to return capital. With the exception of outsized capital returns, all of these drivers have occurred over the last year and we now believe valuation more accurately reflects the strength of Citi’s core franchise. Over the longer term, Citi is still among the banks best positioned to return capital but with the introduction of much more onerous capital rules for large-cap banks (LCR, Basel 3 CCAR, supplementary leverage ratio), we see risk that Citi’s capital return story will be more muted in the near term than we had previously expected (which also limits the ROE improvement story).”
Shares of Citigroup (NYSE:C) traded down 0.44% on Wednesday, hitting $51.90. 20,761,408 shares of the company’s stock traded hands. Citigroup has a 52 week low of $35.10 and a 52 week high of $53.68. The stock has a 50-day moving average of $50.57 and a 200-day moving average of $50.31. The company has a market cap of $157.4 billion and a P/E ratio of 13.15.
Citigroup (NYSE:C) last issued its quarterly earnings data on Tuesday, October 15th. The company reported $1.02 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.11 by $0.09. The company had revenue of $18.20 million for the quarter, compared to the consensus estimate of $18.73 billion. During the same quarter last year, the company posted $1.06 earnings per share. Citigroup’s revenue was down 7.8% compared to the same quarter last year. Analysts expect that Citigroup will post $4.69 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Guggenheim reiterated a “buy” rating on shares of Citigroup in a research note to investors on Tuesday. They now have a $68.00 price target on the stock, up previously from $64.00. Separately, analysts at TheStreet reiterated a “buy” rating on shares of Citigroup in a research note to investors on Tuesday. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Citigroup in a research note to investors on Friday, November 29th. They now have a $56.00 price target on the stock. One analyst has rated the stock with a sell rating, six have assigned a hold rating, twenty-two have issued a buy rating and one has given a strong buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $57.34.
Citigroup Inc (NYSE:C) is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management.
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