Q4 Preview: Analysts Mostly Bullish on Citi (C) Into Results
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Price: $59.14 +1.41%
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Shares of Citigroup (NYSE: C) are up more than 16 percent during 2012 and have outperformed the broader stock market ahead of fourth-quarter results on Tuesday morning. Following inline results from JPMorgan (NYSE: JPM) Friday, shares of Citi closed down 2.72 percent to $30.62.
The Wall Street quarterly consensus for Citi is $0.48 per share in earnings on $18.54 billion in sales. During the fourth quarter of last year, the company reported earnings of $0.40 per share on $18.37 billion in total sales.
For the full year 2011, analysts on the Street are currently estimating $3.81 per share in earnings on $79.72 billion in total sales.
The third quarter conference call is scheduled for 10:30 am ET.
According to data from Bloomberg, shares of Citi have 23 Buy ratings, six Hold ratings, and three Sell ratings. The average price target on shares of C is $42 with a range from $28 to $55.
Analyst Comments:
Analysts at Deutsche Bank are positive on banks stocks ahead of the quarter earnings and has Citi as one of the firm's top picks. The firm notes shares of Citi have lagged the recent run up in banking stocks and has underperformed the BKX which is up 19 percent in 2012.
Deutsche reports, “While Euro/global growth concerns remain, we believe there could be a variety of positive catalysts in 1H12, including: US macro improvement, a pickup in capital markets activity, more progress in Citi Holdings, and better operating leverage. We also expect solid and building capital levels.”
For the fourth quarter, the firm is forecasting EPS of $0.47 as trading revenue should increase by 21 percent quarter over quarter and credit costs should fall by 6 percent.
Analysts at JPMorgan have an Overweight rating and $46.50 price target on shares of C going into the company’s quarterly results on Tuesday. The firm is extremely bullish with its fourth quarter forecasts as they project EPS of $0.57 for the quarter.
JPMorgan comments, “With lesser likelihood of a double dip in the economy, we expect credit related expenses to decline further. We also project capital return to increase for most of our banks in 2012 in both dividends and share buybacks. Headline risk is likely to remain high this year.”
The Wall Street quarterly consensus for Citi is $0.48 per share in earnings on $18.54 billion in sales. During the fourth quarter of last year, the company reported earnings of $0.40 per share on $18.37 billion in total sales.
For the full year 2011, analysts on the Street are currently estimating $3.81 per share in earnings on $79.72 billion in total sales.
The third quarter conference call is scheduled for 10:30 am ET.
According to data from Bloomberg, shares of Citi have 23 Buy ratings, six Hold ratings, and three Sell ratings. The average price target on shares of C is $42 with a range from $28 to $55.
Analyst Comments:
Analysts at Deutsche Bank are positive on banks stocks ahead of the quarter earnings and has Citi as one of the firm's top picks. The firm notes shares of Citi have lagged the recent run up in banking stocks and has underperformed the BKX which is up 19 percent in 2012.
Deutsche reports, “While Euro/global growth concerns remain, we believe there could be a variety of positive catalysts in 1H12, including: US macro improvement, a pickup in capital markets activity, more progress in Citi Holdings, and better operating leverage. We also expect solid and building capital levels.”
For the fourth quarter, the firm is forecasting EPS of $0.47 as trading revenue should increase by 21 percent quarter over quarter and credit costs should fall by 6 percent.
Analysts at JPMorgan have an Overweight rating and $46.50 price target on shares of C going into the company’s quarterly results on Tuesday. The firm is extremely bullish with its fourth quarter forecasts as they project EPS of $0.57 for the quarter.
JPMorgan comments, “With lesser likelihood of a double dip in the economy, we expect credit related expenses to decline further. We also project capital return to increase for most of our banks in 2012 in both dividends and share buybacks. Headline risk is likely to remain high this year.”
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