Citigroup (C) Stock Downgraded at Wells Fargo
NEW YORK (TheStreet) -- Citigroup (C) - Get Report stock was downgraded to 'market perform' from 'outperform' at Wells Fargo in a note released earlier today.
Britain's recent decision to exit the European Union has intensified fears of a global growth slowdown due to a weakened U.K. economy and sustained period of political uncertainty, exacerbating concerns about global economic growth, the firm explained.
These fears have resulted in weaker expectations for growth in emerging economies, as evidenced by the 13% year-over-year decline in the MSCI Emerging Markets Index vs. a 5% drop in the MSCI Developed World Index, Wells Fargo noted.
"With Citi generating roughly half of its revenue outside the U.S. a slower global growth rate is less positive for future revenue growth and investor sentiment in our view," the firm said.
Shares of the New York City-based bank are nonetheless up 1.21% to $41.79 in pre-market trading on Friday after a strong jobs report for June.
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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Citigroup's strengths such as its attractive valuation levels, expanding profit margins and notable return on equity are countered by weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: C
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.