Noted analyst Richard Bove of Rochdale Securities upgraded Citigroup (NYSE: C) to a “Buy” rating up from a “Neutral” rating and increased his target price on the stock from $3.75 to $5.00 per share.
Although Bove’s re-rating of the stock makes the company’s bullish stance on Citigroup official, Bove has already made comments about Citigroup which have had a more positive tone. In recent weeks, Bove has appeared on a number of television shows making positive comments on the stock in recent weeks.
Last week, Bove told Street Insider that Citigroup shares could rise as high as $8.50 over the next several years, citing the government’s exit of the company and his belief that Citigroup’s business units in its Citicorp division could pull in earnings as much as $0.70 per share over the next several years. Citibank sold many of its non-profitable business and now really only has a unit which services large corporations around the world, an international credit card division, a capital markets division and numerous retail banks in New York City.
Bove also appeared on CNBC on March 10th, commenting to the host that Citigroup is set to make “important gains in the long term” citing the company’s $192 billion pile of cash and sale of businesses within its Citi Holdings division.
