I picked up my first 1/4 position in C at $4.50 but is it headed to $3.50?
I hope not but if it does, I’m ready to buy more. Despite the euro, C is poised to be a $5-$6 stock on the next upturn. When will that be?
S&P have a 12-mo target of $6 per share and rates (C:NYSE) a ‘B’.
From their May 15 release:
Our 12-month target price of $6.00 is equal to roughly 1.35X projected tangible book value, below C’s historical average and peers, reflecting market uncertainties.
Since 2007 C has continued to downsize its business thus reducing exposure to high risk securities and troubled loans which should result in lower write-downs this year.
For future growth, C is focusing on international business, which may be the reason C is down again today, troubled international markets. Hey, it’s international markets, not just Europe, but BRIC too.
With neutral insider activity, employees are generally sticking with the stock and that is another indicator that selling has stopped.
The Street rates (C:NYSE) a ‘D’ effectively rating this stock as a Sell. The Street says, “The gross profit margin for CITIGROUP INC is currently lower than what is desirable, coming in at 31.90%.”
But the Street adds: “Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, C’s net profit margin of 14.00% compares favorably to the industry average.”
During the past fiscal year, CITIGROUP INC continued to lose money by earning -$0.22 versus -$6.32 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus -$0.22).