UPDATE: UBS Downgrades Citi (C) to Neutral on Valuation
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Price: $51.45 +1.66%
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade C Now!
(Updated - September 20, 2012 11:29 AM EDT)
UBS downgraded Citi (NYSE: C) from Buy to Neutral and maintained their price target of $36, saying the risk/reward is less compelling.
"We are generally more cautious on the group overall, given the run up in the sector, up 31% since late July (vs 12% for the XLF and 8% for the S&P). C shares have fully participated in this rally too, up 35% over the same time period."
The firm said central bank action won't provide much upside. "We estimate that in a more constructive environment for capital markets, Citi’s ROTE could move up to 9.5% for next year. However, given a 12% cost of equity, this would mean C shares do not have much upside at 0.7x TBV, even in the unlikely case where that very optimistic scenario plays out."
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 $34.18 yesterday, with a 52 week range of $21.40-$116.09.
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UBS downgraded Citi (NYSE: C) from Buy to Neutral and maintained their price target of $36, saying the risk/reward is less compelling.
"We are generally more cautious on the group overall, given the run up in the sector, up 31% since late July (vs 12% for the XLF and 8% for the S&P). C shares have fully participated in this rally too, up 35% over the same time period."
The firm said central bank action won't provide much upside. "We estimate that in a more constructive environment for capital markets, Citi’s ROTE could move up to 9.5% for next year. However, given a 12% cost of equity, this would mean C shares do not have much upside at 0.7x TBV, even in the unlikely case where that very optimistic scenario plays out."
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 $34.18 yesterday, with a 52 week range of $21.40-$116.09.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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