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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

7 Bank Stocks Loved by Deutsche Bank (Update 3)

Stocks in this article: BAC C JPM WFC BBT KEY RF TCB

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

Get Adobe Flash player

Shares of Citigroup (C) closed at $34.25 Wednesday, returning 30% year-to-date.

O'Connor's price target for Citi is $36.00.

The analyst calls Citigroup "the only US bank with a meaningful presence in emerging markets (EM) in each core segment," with "total non-US revenue was over 50% of revenue at C overall."

"This is a positive," says O'Connor, "if one assumes growth in the US and developed markets in general will lag EM growth," but then again, "C is seen as more susceptible to concerns over a global slowdown and Euro zone issues (even though its exposure isn't much larger than peers BAC/JPM)."

O'Connor estimates that Citigroup will earn $3.79 a share in 2012, followed by EPS of $4.88 in 2013.

Citigroup's capital is growing, and O'Connor estimates the company will achieve a Basel III Tier 1 common equity ratio of 8.8% by the end of 2012, and that "beyond 2012, we think excess capital could build meaningfully."

The analyst also points out that Citigroup trades at a similar discount to book value as Bank of America, -- the shares of both companies traded for 0.7 times tangible book value at Tuesday's close, according to HighlineFI -- "despite higher capital and lower risk."

On the negative side, O'Connor says that Citi is "too reliant on capital markets," and that the company "has less expense flexibility in the investment bank, given recent investment spend and ongoing required investments in technology." The analyst also says that with "more moving pieces than other U.S. banks," the company is "a bit more difficult to analyze and compare vs. US peers."

Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.

3 of 8

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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