Nomura Securities Maintains a 'Buy' on Citi (C); Disappointing CCAR Results, but Not As Bad As It Looks
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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 $41.00.
Analyst, Glenn Schorr, said, "Citi just missed the CCAR bar with the minimum T1C ratio inching just under at 4.9%. While the miss leads to negative headlines and is embarrassing, we don’t think Citi was overly aggressive in its ask from the Fed. The issue is clearly more about perception than earnings (a $2bn buyback in 2012 would only move 2012E EPS by ~$0.04/share). Once the headlines fade, we think this doesn’t change the Citi story (improving earnings, solid capital), it just pushes back capital returns until later this year or next. We view Citi as attractive at 0.7x TBV, given its growing int’l franchise, relative NIM stability, and lower mortgage related tail risk."
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 $36.45 yesterday.
Analyst, Glenn Schorr, said, "Citi just missed the CCAR bar with the minimum T1C ratio inching just under at 4.9%. While the miss leads to negative headlines and is embarrassing, we don’t think Citi was overly aggressive in its ask from the Fed. The issue is clearly more about perception than earnings (a $2bn buyback in 2012 would only move 2012E EPS by ~$0.04/share). Once the headlines fade, we think this doesn’t change the Citi story (improving earnings, solid capital), it just pushes back capital returns until later this year or next. We view Citi as attractive at 0.7x TBV, given its growing int’l franchise, relative NIM stability, and lower mortgage related tail risk."
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 $36.45 yesterday.
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