Wells Fargo Upgrades Citi (C) to Outperform; Capital Return, EPS Expansion And Valuation Combine To Drive Uncommon Value

Wells Fargo upgraded Citi (NYSE: C) from Market Perform to Outperform, raises price target range of $35-37 from $28-30.

Wells analyst said, "A combination of: 1) improved operating leverage, 2) increased capital flexibility and repurchases, and 3) valuation that sits near the bottom of its peer group offer 14-20% upside potential in 2012, in our view."

"We are raising our 2012-13 EPS estimates for Citi to $4.00/4.75 from $3.85/4.50 to reflect higher buyback assumptions and management’s outlook for a $2.5-3.0B reduction in operating expenses in 2012 (excluding FX and one-time charges), which we view as achievable and could be exceeded if capital market conditions fail to improve from currently depressed levels."

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 $30.72 yesterday.

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