NEW YORK ( TheStreet) -- Citigroup ( C - Get Report) were gaining traction against broader market bearishness on Tuesday, with one analyst saying the stock is worth more than $5.

In recent trading, Citi shares were up 1.1% at $4.20, vs. a 0.5% in the S&P 500 Index and a 0.8% drop in the KBW Bank Index of large-cap financials.

On Tuesday Oppenheimer analyst Chris Kotowski reiterated an outperform rating on Citi shares, with a $5.20 price target. Kotowski offered a detailed analysis to clients, arguing that Citicorp - the so-called "good bank" that Citi is retaining - will be worth far more than the market is now pricing in, even as it continues to dismantle Citi Holdings, the "bad bank" it's divesting.

"There is good reason to believe that Citi Holdings can be wound down without undue further damage to shareholders and that the remaining businesses in Citicorp are worth over $5 per share," Kotowski said in his report.

The analyst cited diversified revenue streams by geography and business lines as one reason for his bullish view. He noted that Citi's wholesale securities and banking business has maintained market share throughout the crisis and that transaction services business has been "a rock steady performer" as well.

"While we think Citi's U.S. consumer franchise still faces some challenges, we think it looks very much like Capital One ( COF), and should be valued accordingly," said Kotowski, "and that Citi's Asian and Latin American businesses are growing nicely and should be valued accordingly as well."

Kotowski isn't a lone Wall Street bull: Of 22 analysts that cover the stock, 12 rate it a buy or strong buy and just two advise clients to sell or avoid the stock, according to Thomson-Reuters. The median price target on Citi shares is $5.35.

-- Written by Lauren Tara LaCapra in New York.

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