Citi (C) Shares Rise as BofA Upgrades to Buy
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Price: $129.67 -2.42%
Rating Summary:
31 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
31 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Shares of Citi (NYSE: C) are up nearly 2 percent in pre-market action Wednesday following an upgrade from analysts at BofA Merrill Lynch.
The firm now rates Citi shares a Buy, up from Neutral previously. BofA set a $53 price target on the stock.
BofA cites several trends which could push return-on-equity higher: an increase in consumption of deferred tax assets, a better-than-expected recovery in credit and solid growth in the emerging markets.
The firm believes Citi will return a large chunk of capital to holders in 2013 and sees earnings power of about $6 per share by then. BofA predicts Citi Holdings to be about half the current size over the next few years, and also offer a better asset mix.
With Citi shares last trading at $40.90, BofA's price target suggests potential upside of about 30 percent.
Visiti our Analyst Ratings page to track all the market-moving upgrades/downgrades on shares of Citigroup.
The firm now rates Citi shares a Buy, up from Neutral previously. BofA set a $53 price target on the stock.
BofA cites several trends which could push return-on-equity higher: an increase in consumption of deferred tax assets, a better-than-expected recovery in credit and solid growth in the emerging markets.
The firm believes Citi will return a large chunk of capital to holders in 2013 and sees earnings power of about $6 per share by then. BofA predicts Citi Holdings to be about half the current size over the next few years, and also offer a better asset mix.
With Citi shares last trading at $40.90, BofA's price target suggests potential upside of about 30 percent.
Visiti our Analyst Ratings page to track all the market-moving upgrades/downgrades on shares of Citigroup.
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