Citi (C) Price Target Raised to $56 at Deutsche Bank
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Deutsche Bank maintained a Buy rating on Citi (NYSE: C) and raised its price target to $56.00 (from $54.00). Analyst Matt O'Connor noted recent developments, including its sale of OneMain, its deal with Costco Wholesale (NASDAQ: COST), which he thinks will add $200 million to annual net income, and a successful stress test.
"The Citi story has gained momentum of late, with the Costco deal an additional positive surprise in our view. From here, drivers will likely be results (1Q seems in line so far) and the absence of additional outsized legal or regulatory issues arising (in addition to general macro conditions). We tweak up our 2016e to $5.58 and target price to $56 (from $54, given higher 2016e and recent positive news). Our 2016e is 5% below consensus as some of the moving pieces don’t seem to be reflected in estimates and will initially be initially dilutive to EPS (though likely closer to neutral longer term). C shares trade at a 6% discount to tangible book and a 13% discount to our year end TBV est," said O'Connor.
Shares of Citi closed at $53.69 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesDeutsche Bank, Citi
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