Potential catalysts for Citi in the near term include "additional organizational/management changes as well as our expectations for a more favorable CCAR review and more important, validation from the Fed of the progress made over the last few years and months, including the expected announcement of increasing capital redeployment for 2013," he wrote.
At the current price of $41.25, the stock trades at 8-9 times 2013 earnings, making it the "cheapest broker" ending 2012. Hagerman has a 12-month price target of $50 for Citi, implying a 21% upside to the stock.
-- Written by Shanthi Bharatwaj in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV