Citi's shares trade for 0.7 times their reported Sept. 30 tangible book value of $52.70, and for eight times the consensus 2013 EPS estimate of $4.64.
Following former Citigroup CEO Vikram Pandit's recent ouster, investors are looking for new CEO Michael Corbat to speed-up Pandit's long-term "good bank/bad bank" strategy of placing noncore assets into Citi Holdings and winding them down, in order to boost regulatory capital ratios and enable a significant boost in the company's return of capital to investors, through share buybacks and an increase in the dividend on common shares, which is currently just a penny per quarter.
Following the next round of stress tests, O'Connor expects Citigroup to return a total of $2.774 billion in capital to investors during 2013, through $1.199 billion in dividends, and $1.575 billion in common share repurchases. The analyst expects Citi's shares to have a dividend yield of 1.1% for 2013.C data by YCharts
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