Citigroup (C) Flubs Q4 but Still Cheap Stock
Oppenheimer expected Citigroup (NYSE: C) to report Q4 EPS of $1.09. Unfortunately analysts were surprised to learn Citi's trading revenues declined 25 percent, leaded to EPS of only $0.94. Analyst Chris Kotowski expressed disappointment but still believes Citigroup stock remains sharply undervalued.
"We believe that the ongoing businesses in Citicorp easily have $5.50-$6.00 of earnings power, probably more if and when capital markets revert to a more normal state of affairs," said Kotowski.
"By the time next year's CCAR results are announced, it seems highly likely to us that the company will be in an unimpeachable position in terms of capital and asset quality and will be permitted a share repurchase," he added.
Oppenheimer has an Outperform rating on Citigroup (NYSE: C) with a modified price target of $50.00 (from $51.00).
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 $41.24 yesterday, with a 52 week range of $24.61-$116.09.
"We believe that the ongoing businesses in Citicorp easily have $5.50-$6.00 of earnings power, probably more if and when capital markets revert to a more normal state of affairs," said Kotowski.
"By the time next year's CCAR results are announced, it seems highly likely to us that the company will be in an unimpeachable position in terms of capital and asset quality and will be permitted a share repurchase," he added.
Oppenheimer has an Outperform rating on Citigroup (NYSE: C) with a modified price target of $50.00 (from $51.00).
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 $41.24 yesterday, with a 52 week range of $24.61-$116.09.