Citigroup (C) "Extremely Cheap" - Bill Ackman
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Price: $51.00 -1.28%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 0.1%
Revenue Growth %: +5.6%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 0.1%
Revenue Growth %: +5.6%
Trade C Now!
Hedge fund titan Bill Ackman of Pershing Square Capital offered some bullish commentary on Citigroup, Inc. (NYSE: C) in a letter to clients today.
Ackam said Citi is a "well-capitalized financial institution trading at a substantial discount to intrinsic value." Commenting on the return of capital to shareholders, he said while the company is above the minimum capital ratio, the company elected not to return capital this year in light of the uncertain environment. This delays this catalyst until 2013.
Citi remains "extremely cheap," he said. "It trades at less than 60% of tangible book value, about six times last year’s underlying earnings per share and about four times normalized earnings per share after giving credit to its net tax assets and excess capital."
Ackamn stated that continued profit generation and growth in tangible book value will force investors to revalue the bank at prices closer to its intrinsic value.
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Ackam said Citi is a "well-capitalized financial institution trading at a substantial discount to intrinsic value." Commenting on the return of capital to shareholders, he said while the company is above the minimum capital ratio, the company elected not to return capital this year in light of the uncertain environment. This delays this catalyst until 2013.
Citi remains "extremely cheap," he said. "It trades at less than 60% of tangible book value, about six times last year’s underlying earnings per share and about four times normalized earnings per share after giving credit to its net tax assets and excess capital."
Ackamn stated that continued profit generation and growth in tangible book value will force investors to revalue the bank at prices closer to its intrinsic value.
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