An Oppenheimer Funds analyst said on Friday that he believes Citibank (NYSE: C) shares are now fairly priced after this week’s run-up on positive comments from the company’s CEO, signs that the government may wind down its stake in the company and news that Citibank is set to sell its Citi Property Investors unit.
Citibank shares have jumped by 20% during the trading week.
Citibank CEO Vikram Pandit said earlier in the week that Citibank is returning to sustained profitability after having two years marked by major losses and a multi-billion dollar bailout. Pandit said that Citibank has overhauled its operations, is shedding its money-losing businesses and is placing a new emphasis on growth in emerging markets.
Oppenheimer Analyst Chris Kotowski said in a client note that “despite some hopeful signs, we believe that the stock is under something of a cloud, as long as the government remains a major shareholder.”
Kotowski thinks that the company will rebound once the consumer credit market regains traction and when the government ends its partial ownership of Citibank.
