Citigroup has a competitive advantage,in the view of David Konrad,CFA,Managing Director at Keefe,Bruyette and Woods.They will be able to sell Citi Holdings,their troubled assets,and are doing well at this time of growing trade finance.Citi is improving its Basel III captial ratio.
The drag of Citi Holdings will decline each year,easing significantly over the next few years.The bad bank will take five years to entirely dissolve.In about two years,Citi Holdings will be less than 10% of Citigroup.
The stock will rally 33%.We do a lot of stress models,and we think the capital is there.The transparency has gotten better over the past year.KBW has upgraded Citigroup to outperform,with a price target of 44 dollars.
Keefe,Bruyette and Woods is a full service boutique investment bank.Its specialty is the financial services sector.
Citigroup closed at 34.78 on Monday.
Citigroup(C),Keefe Bruyette and Woods(KBW)
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