Updated with Citigroup's latest share price, research note commentary.NEW YORK ( TheStreet) -- Citigroup ( C) shares dipped Monday afternoon following the U.S. Treasury's announcement of plans to sell its stake of 7.7 billion common shares in the company this year. The stock was off 12 cents, or nearly 3%, to $4.18 with less than two hours left in the session. Volume of 689.4 million was outpacing the issue's trailing three-month daily average of 480.7 million. The Treasury's take is related to Citigroup's participation in the Capital Purchase Program, and it represents about 27% of the company's outstanding common stock. Morgan Stanley ( MS) will serve as underwriter for the stake's disposal, which Citigroup said would take place "over the course of 2010 subject to market conditions." A pre-arranged written trading plan is to be worked up for the exit, but further details weren't disclosed. The Treasury noted that the sale of the common shares doesn't affect its holdings of Citigroup trust preferred securities or warrants for its common stock. Citigroup's stockwas up more than 30% year-to-date based on Friday's close at $4.31. The Treasury holds its common shares at $3.25 each. Deutsche Bank reiterated a buy rating on the stock following the news, calling the Treasury's confirmation of the market's expectations that it was readying the sale "a modest positive" for the stock. The firm anticipates the government will gradually divest the stock in the open market, but said a large block sale could go through as some point as well. "A drip of Citi shares through the end of the year would represent 5-10% of daily volume (which has averaged 600m shares the past month, but could increase given today's news)," Deutsche Bank said. "But with the recent strength in the stock (it's up 26% in the past month), a likely decent 1Q, and likely continued near-term improvement in macro trends (i.e. housing, employment etc.), we believe a block sale is likely--potentially sometime in 2Q." With a target price of $5.50 on the stock -- upside of another 30% from current levels -- Deutsche Bank is firmly in the bull camp on Citigroup, and it expects the company to meet the current average estimate of analysts polled by Thomson Reuters for a breakeven performance in the first quarter with results benefiting from a rebound in trading and a further decline in credit costs. Overall, Wall Street sentiment on Citigroup is still fairly mixed. Of the 21 analysts covering the company, 10 rate it at hold, and another three are at sell (2) or underperform (1). That skepticism about the company, which received bailout funds of roughly $45 billion during the financial crisis, is balanced against six analysts with buy ratings and two at strong buy. The average 12-month price target for analysts covering the stock, however, is $4.75, according to Thomson Reuters. -- Written by Michael Baron in New York.