Credit Suisse downgrades Citigroup as shares near target price
Credit Suisse analysts Susan Roth Katzke and Jill Shea on Friday downgraded shares of Citigroup Inc. (C) to neutral from outperform after the stock has risen 15% from its recent lows and climbed to within 10% of their $58 a share target price. "We realize that the downside to C shares may prove more limited given a valuation within reach of prior cyclical troughs; but we believe the upside, relative to peers, will also prove more limited given the long road ahead in Citi's transformation process," analysts said. Credit Suisse reiterated its 2022 earnings target of $6.25 a share and its 2023 earnings target of $6.95 a share for Citi. The targets do not include net gains on sales or incremental restructuring costs. The 2024 earnings target of $8.55 a share, if achieved by Citi, will translate to a return on tangible equity (ROTE) of about 8%. Citigroup shares fell 1.3% on Friday. The stock is down 11.6% so far in 2022 compared to a 9.9% loss by the Financial Select Sector SPDR ETF (XLF).
(END) Dow Jones Newswires
May 27, 2022 11:36 ET (15:36 GMT)
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