NEW YORK (TheStreet) -- Citigroup (C) stock is gaining 1.23% to $45.95 in late morning trading on Monday after a Portales Partners analyst said the bank's share price could double by 2020, according to Bloomberg.
"Citi could be a $90 stock by 2020 given the kind of capital they're going to retire," analysts Charles Peabody told Bloomberg Television.
New York City-based Citigroup and its peers are likely to generate capital through asset sales, which are meant to meet new regulations established after the financial crisis.
"Once we get past '17, you're going to see a tremendous amount of capital returned by these money-center banks," Peabody explained, Bloomberg noted.
Earnings per share growth is likely to increase by four to five percentage points, but loan losses related to energy companies are likely to increase, he added.
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Separately, Citigroup has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's attractive valuation levels, expanding profit margins and notable return on equity, which offsets unimpressive growth in net income, weak operating cash flow and disappointing stock performance.
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.