Citigroup (C) Stock Gets Price Target Boost at BMO Capital

NEW YORK (TheStreet) -- Citigroup's  (C) stock price target was raised to $67 from $66 at BMO Capital Markets this morning. The firm maintained its "outperform" rating.

Citigroup delivered higher-than-estimated earnings results its 2015 second quarter, BMO Capital said in an analyst report.

The financial services company reported earnings of $1.51 per share on revenue of $19.5 billion.

The positive results were attributed to strong FICC trading revenues and higher cost efficiency, according to analysts.

Citigroup stock, however, is still underestimated since the company's growth is misjudged, especially in regards to its regulatory capital, analysts said.

Regulatory capital is expected to continue growing, despite interest rate volatility, analysts added.

Shares of Citigroup are up 0.09% to $58.65 in afternoon trading on Friday.

Insight From TheStreet Research Team

TheStreet's Doug Kass commented today on Citigroup in a post on RealMoneyPro.com. Here is a snippet of what Kass had to say:

My principal take on second-quarter results is that profit visibility has improved at Citigroup, thus laying the foundation for both an attractive earnings growth case and a price-to-earnings multiple improvement story that may close the 10% valuation discount of CItigroup relative to its peers.

Citigroup is trading at about nine times my 2017 estimate ... and only at about 0.7 year-end tangible book value in 2017, which makes it one of the few money center banks trading at under book value.

In response to a healthy profit progression over the next few years I expect C's dividend to increase from an annual rate of 20 cents a share to 70 cents.

-Doug Kass 'The Citi Isn't Sleeping' originally published on 7/17/2015 on Real Money Pro.

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