Citigroup rose an additional 3.6% on Monday, closing at $4.04 after an upgrade from noted analyst Richard Bove of Rochdale Securitise.
Bove upgraded Citigroup (NYSE: C) yesterday to a “Buy” rating, up from a “Neutral” rating and raised the price target on Citigroup’s stock price from $3.75 to $5.00. Bove believes that Citigroup shares will get as high as $8.50 over the next few years.
According to the New York Times, Bove “feared that the government’s potential sale of 7.7 billion shares would cause the issue to fall before it could rise,” Bove wrote. “The clients’ view is that this is poor thinking on my part. Either I liked the stock’s long term outlook or I did not they claimed. The price of the offering was already priced in.
“There are two core questions. 1) Do you like this company or not? 2) Do you believe the price of the stock will get to $8.50 per share in the next few years or not? The answers are yes and yes. Then say clients I should have a Buy on the stock.,” he concludes.
