Several analysts have recently weighed in on Citigroup Inc (NYSE:C), issuing notes to investors. Vivek Juneja of J.P. Morgan Assigning their Hold rating on the stock 4 days ago with a $54.00 price target, or 7.25% upside to the last closing price. According to Tip Ranks, Vivek is ranked 300 out of 3431 analysts. The stocks he covers yield an average of 23.60% growth in the one year following his recommendations.
Chris Kotowski of Oppenheimer also released a note to investors three months ago reiterating the firms Buy stance on Citigroup Inc (NYSE:C).
“We had a chance to meet with Citi’s treasurer earlier today with a primary focus on balance sheet management. In particular, we dove into the implementation and accounting for new capital and liquidity standards and the likely impact on Citigroup Inc (NYSE:C)’s business and the markets at large. We started by pointing to a recent Citi fixed income presentation (dated October 17, available on its website) which had an illustrative example (slide 12) of Citi’s total loss-absorbing capacity (TLAC). The measure is calculated with loss-absorbing capacity (Tier 1 common + preferred + holding company debt) in the numerator and risk-weighted assets (RWAs) in the denominator. On this measure, Citi stood at 20.2% vs. an anticipated required range of 20-24%.”
Chris also added, “Given RWAs of $1.3T that could in theory require tens of billions of dollars of debt issuance, Aboaf gave good reasons why the P&L impact of this would likely be muted. In particular, “non-LAC” bank debt such as FHLB borrowings and securitizations (Citi has ~$68B) could over time be swapped for LAC debt. Another new metric (i.e., new since post-crisis reforms) is the liquidity coverage ratio (LCR), which shows high-quality liquid assets (HQLA) divided by anticipated outflows in a stress environment (slide 17). Here the numerator is relatively straightforward (cash, treasuries, sovereigns), but the denominator is not discernible from GAAP balance sheets.”
According to TipRanks.com Chris Kotowski 484 out of 3460 analysts and has an average one year return of 10.80% on the stocks he covers with a 74% success rate.
Another analyst at Buckingham has a Bullish stance on Citigroup Inc (C) . James Mitchell issued a note recently with a Buy rating on the stock and $65.00 price target or 29.38% upside to the last closing price. According to Tip Ranks, James is ranked 16 out of 3441 analysts. The stocks he covers yield an average return of 88.00% in the year following his recommendations.
“Reiterate BUY rating and $65 target (16% upside) following 4Q14 guidance at an industry conference, including a weaker trading outlook and $3.5B of litigation/restructuring charges (vs. our $1B forecast). The trading guidance was not surprising given the weak start to October, and why our 4Q14E EPS was already below consensus. And while an outsized legal charge is never good news, it appears to be an attempt to “clean up” outstanding issues and better position C to hits its profitability targets for next year – and why we now feel more confident in our above consensus 2015E EPS. No change to our favorable outlook on the stock given an inexpensive valuation, above average LT growth and returns via its international footprint, and a potential catalyst in March via share buybacks. We see a very favorable risk/reward, with 36%/ (14%) upside/downside in our scenario analysis.”