Citigroup (NYSE:C) released a research report today reaffirming their “Buy” rating on Bank of America (NYSE:BAC).
In the report, Citigroup gave their reasoning as this: “.,. we believe BAC represents the best value in the group trading at a discount to the group on normalized earnings.”
The price target of Citigroup on Bank of America is $26 a share, and the giant bank said they “believe the valuation discrepancy is too wide, and continues to offer investors the best way [Bank of America] to invest in the banking sector.”
Bank of America was up well over 5 percent in today’s trading session, and the share volume was over 183 million at about 1:45 EST.
As for Citigroup, they’ve been struggling lately as the market asorbed the news of the Treasury beginning to sell of their shares in the financial institution. Concerns over diluting the shares has hit the bank, and Vikram Pandit also recently stated the company won’t be performing at an upward trajectory going forward, but will have a lot of bumps along the way.
Citigroup is also up by over 5 percent as we get close to 2:00 EST.
