It’s been a wild ride with Citi Group, Inc. Last March C was trading at $4.50+, when it dropped to $24.35 on 9/22 and $23.10 on 10/3 I bought only to sell 13 days later for $28.95.
Today I’m starting a new position with C with a buy at $24.99. This will be 1/4 of my max target position in C.
Credit Suisse Price Target $48
On November 1, Crdit Suisse upgraded shares to outperform from neutral. They said, “With risk materially reduced, the balance sheet strengthened and profitability improving, the current risk/reward on the shares is compelling at current levels. We are increasing our target price to $48 (from $45) based on 0.9x forward tangible book value and 10.7x 2012 earnings.Valuation Is Attractive, with Shares Trading at a Significant Discount to Tangible Book Value.
Ford Equity Research rates C a Strong Buy
The strong buy rating is based on strong earnings, relative valuation and recent price movement. Capital Position Remains Strong, Positioned to Return Capital to Shareholders in 2012
The Street Rates C a C-
The company’s strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and a generally disappointing performance in the stock itself.
Standard and Poor’s rates C Three out of Five Stars
Our risk assessment reflects our view of C’s exposure to risky assets on its balance sheet and to uncertain credit in domestic and international markets, offset by the many improvements C has
made to capital levels, credit quality and earnings stability over the past two years.
I’m not going to jump in with both feet on Citigroup, but the current beat down of C looks good.