Shares of Citigroup closed at $42.80 Thursday, trading for 0.8 times tangible book value, and for 8.2 times the consensus 2014 EPS estimate of $5.19. The consensus 2013 EPS estimate is $4.60.
Citigroup is one of O'Connor's "top picks" among large-cap banks, along with U.S. Bancorp. O'Connor's price target for the shares is $46, and he estimates the company will earn $4.50 a share in 2013, with EPS rising to $5.15 in 2014.
The analyst wrote on Thursday that although "capital markets revenues were a bit light
"The stock also trades at the lowest valuation of the banks we cover on both tangible book (at 0.8x) and EPS (9x 2013E, 8x 2014E, 7x 2015E)," he said.C data by YCharts
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