Nomura Securities Maintains a 'Buy' on Citi (C); 4Q11 Results First Read: Mostly IB-Related Miss
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Price: $139.33 +0.43%
Rating Summary:
31 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
31 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Citi (NYSE: C) price target of $36.00.
Nomura analyst, Glenn Schorr, said, "Weak quarter, but keep the perspective that the bulk of the miss on the revenue and expense front is IB-related and our gut is we’ll see more restructuring going forward (hence the “lower expenses in 2012”). In 4Q, Consumer Banking continued to grow (fueled by the int’l growth engine), Transaction Services was decent, the NIM actually rose and so did loans & deposits. While Holdings continues to shrink, it’s still an $800 mn/qtr drag on earnings and while reserve releases are good (and more to come), they’re still a big piece of earnings. With the stock up 17% YTD (S&P 500 up 2.5%) and Street estimates likely come down for 2012 (EPS was low to mid $0.70’s if we ex all the significant items), the stock will likely take a breather, but is still attractive in our eyes."
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 $30.74 yesterday.
Nomura analyst, Glenn Schorr, said, "Weak quarter, but keep the perspective that the bulk of the miss on the revenue and expense front is IB-related and our gut is we’ll see more restructuring going forward (hence the “lower expenses in 2012”). In 4Q, Consumer Banking continued to grow (fueled by the int’l growth engine), Transaction Services was decent, the NIM actually rose and so did loans & deposits. While Holdings continues to shrink, it’s still an $800 mn/qtr drag on earnings and while reserve releases are good (and more to come), they’re still a big piece of earnings. With the stock up 17% YTD (S&P 500 up 2.5%) and Street estimates likely come down for 2012 (EPS was low to mid $0.70’s if we ex all the significant items), the stock will likely take a breather, but is still attractive in our eyes."
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 $30.74 yesterday.
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