Citi (C) Removed from Wells Fargo Priority Stock List on EM Concerns

January 30, 2014 9:33 AM EST
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Price: $55.72 -0.7%

Rating Summary:
    18 Buy, 12 Hold, 3 Sell

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Wells Fargo maintained an Outperform rating on Citi (NYSE: C) but removed the stock from its priority list due to concerns on Emerging Markets.

"Although we believe Citi shares are likely to be clouded by emerging market (EM) concerns, our Outperform recommendation remains underpinned by the following: (1) expectations for continued progress toward Citi's 10%+ ROTCE target by mid-2015; (2) resilient NII/NIM trends; (3) improved capital returns in 20142015; (4) S&B market share gains; (5) attractive valuation," said analyst Matthew H. Burnell.

"Beyond sentiment, we acknowledge downside earnings risks from more challenging EM conditions (e.g., higher credit costs and potential asset impairments) since EM accounts for nearly half of Citi's franchise, although we view higher interest rates and more robust trading volumes as potential offsets (though we note FX volumes on the CME are trending 12% lower Y/Y). While the individual impact of such potential events appears manageable, collectively they could present a material headwind to EPS in the near term," he added.

For an analyst ratings summary and ratings history on Citi click here. For more ratings news on Citi click here.

Shares of Citi closed at $48.08 yesterday.

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