Shares of Citigroup are down 18% in the past month, with year-to-date returns hovering around 3%.
Citi has not fully recovered from the Fed's rejection of its capital return plans, which placed it squarely in the "weak bank" camp.While the bank has said it may re-submit its plan to the regulator this June, it is still trying to understand the Fed's stress test models. The bank may choose to delay its request to 2013, which would give it more time to build more capital and thereby stand a better chance of winning the Fed's approval. Shareholders are certainly not pleased with the bank, with most voting down the $15 million pay package to CEO Vikram Pandit. Still, analysts remain positive on the stock, following a strong first quarter performance that showed improvement across businesses. Even long-term bear Meredith Whitney upgraded the stock to a hold rating from underperform. Coincident with 1Q12 earnings, we are upgrading C shares to HOLD from UNDERPERFORM, as improving operating metrics and a still historically low valuation temper the probability of a significant absolute share price decline," Whitney wrote in a report. The analyst expects Citi to handily make its capital target of over 8% by the end of 2012. She also highlighted expense control as the single largest question for Citi's investors, and a "necessary precondition" of Citi reaching its 1.25-1.50% return on asset target. 19 analysts rate the stock a buy, five analysts maintain it at hold and four have an underperform or sell rating.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV