UBS analyst Brennan Hawken on Monday upgraded Citi to a "buy" rating from a "neutral" rating, with an aggressive price target of $62.00. The analyst in a report called Citigroup "a story with legs," and said Citi Holdings "could free up over $10 billion in trapped capital in just the next two years." Hawken added that Citigroup's $55 billion deferred tax asset"will release copious capital over time and we found none of that accretion is priced in today."
Citi's shares were down over 1% to close at $46.95. The shares have returned 19% this year, following a 51% return in 2011. The shares trade for 0.9 times their reported Dec. 31 tangible book value of $51.19, and for 9.0 times the consensus 2014 earnings estimate of $5.22 a share, among investors polled by Thomson Reuters. The consensus 2013 EPS estimate is $4.65.
Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn