Shares Higher Ahead of Citigroup (C) Q3 Earnings Release Tomorrow

October 14, 2009 5:14 PM EDT

Citigroup Inc. (NYSE: C) shares are trading moderately higher ahead of its
Q3 earnings report, expected out just before the market opens tomorrow, October 15, 2009. The stock is up 2.80% to $4.97.

Analysts currently expect Citigroup to report quarterly loss of $0.38 per share on revenue of $20.04 billion. According to data from Bloomberg, 7 analysts have Buy ratings on Citi, 9 have Holds and 6 have Sell ratings on the stock.

Analysts have an average price target of $4.73.

Keefe, Bruyette, and Woods' (KBW) analysts state, "The investment thesis of Citigroup is challenging given our expectations for continued operating losses following a capital raise that resulted in meaningful dilution and government ownership. Moreover, we believe reducing risk embedded in certain non-core segments is unlikely to be a quick process. That said, a renewed focus on historical strengths that lever its competitive advantages, especially its international platform, may allow Citigroup to return to success longer term." KBW has a Market Perform rating with a downside price target of $4.20.

Richard Bove, of Rochedale Securities, raised his price target on Citigroup Inc. (NYSE: C) to $6.50 and said that Citigroup "has an attractive long-term future" and "will be funded by one of the most liquid balance sheets in banking."

Just this week, Deutsche Bank started new coverage on the Citigroup with a Buy rating and $5.50 price target. They said while issues remain, investor focus will eventually shift to what Citi can earn in a more normal environment and what will be done with excess capital.

Citigroup will issue its third quarter 2009 results via press release at approximately 8:00 AM (EDT) on October 15, 2009. Results will be reviewed via live webcast and teleconference at 11:00 AM. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.

A big question investors will likely focus on will be related to what, if anything, will be done with the U.S. government's 7,692,307,692 share, or 33.6%, stake. In addition, investors will wonder if a reverse stock split is still on the table.

Related Categories

Insiders' Blog
Trader Talk

Stocks Mentioned

Related Entities

• Deutsche Bank
• Citi
• Richard Bove

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?