This Day On The Street
Continue to site
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

Citigroup's Asia Moves Good for Stock: Analyst

NEW YORK ( TheStreet)-- Citigroup's (C - Get Report) expansion into Asia is a reason to buy shares, says RBC Capital Markets analyst Gerard Cassidy.

"This is definitely one of the long term reasons to own Citigroup," said RBC Capital Market analyst Gerard Cassidy. "This is a good play for investors who want to see some growth from emerging or international markets."

Citigroup is expected to sign a joint venture securities business agreement with Orient Securities Company of Shanghai by Thursday according to The Wall Street Journal. Citigroup would not comment on the report.

"This U.S. company has had 60 percent of its growth come from international markets, and its expansion into Asia and the emerging markets is a good growth plan," Cassidy said, adding he rated Citigroup as "outperform."

"By declaring a dividend the goal was to bring in institutional investors," said Cassidy. "I'm not sure more institutional investors got in after the reverse split. If they had to do it again I would suggest they not do it because of all the anger it caused among shareholders."

Cassidy says he expects Citigroup's dividend to increase to over a dollar per share from four cents a year by 2012 with a payout ratio of 15-20 percent of earnings expected in 2012.

Separately, Citigroup has also said that it will be adding 10 managing directors to its Asian investment banking business, according to The Wall Street Journal. Cassidy has a 2011 EPS of $4.89 and a 2012 EPS of $6.05.

Tom Mitchell, an analyst at Miller Tabak & Co. said that a joint venture in China mirrors Morgan Stanley (MS - Get Report) and JPMorgan's (JPM - Get Report) securities joint ventures in the country which were announced in January.

"It is natural for Citigroup to want to be in China," said Tom Mitchell, an analyst at Miller Tabak & Co. "It is where the money is right now. If you are large enough you have to be there."

Mitchell adds that the reverse stock split did not change how investors view Citigroup.

--Written by Maria Woehr in New York.

To contact the writer of this article, click here: Maria Woehr.
1 of 2

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $38.22 -4.10%
JPM $56.19 -2.70%
MS $22.97 -5.70%
AAPL $94.57 0.58%
FB $100.65 -3.30%


Chart of I:DJI
DOW 15,905.63 -299.34 -1.85%
S&P 500 1,843.38 -36.67 -1.95%
NASDAQ 4,260.0340 -103.11 -2.36%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs