This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Citigroup Upgraded By Morgan Stanley

NEW YORK ( TheStreet) -- Morgan Stanley (MS - Get Report) analyst Betsy Graseck upgraded Citigroup (C - Get Report) to "overweight" from "equal-weight" and gave the bank a $6 price target, according to a note issued Friday.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The upgrade was due to the pace at which Citigroup is divesting non-core assets, the fast growth of its international business and the increase in capital returns shareholders.

"We now estimate a 6.75 year wind down, below our 9.25 year estimate," said Graseck in a note. "As a result, the net present value of non-core losses falls 69 percent to $1.8 billion from $5.8 billion."

As a result, analyst also raised her price target for Citi to $6 from $5.25 and increased the earnings forecast for the bank over the next two years."

Graseck added that the faster wind down of non-core assets should free up $19 billion in capital by 2014. She predicted that Citigroup should be able to complete buybacks in 2012 and return 49 percent of its current market cap to shareholders through 2014, including 9 percent through dividends.

In addition, Graseck said that the 10-for-1 reverse stock split would increase the bank's investors.

Many analysts such as Rochdale Securities' Richard Bove have said that the reverse stock split may decrease the amount of retail investors owning the stock along with the volume in the market.

--Written by Maria Woehr in New York.

To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to

To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
C $50.99 -0.39%
MS $35.82 0.56%
AAPL $123.25 -0.80%
FB $83.30 0.35%
GOOG $548.13 -1.30%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs