Goldman Sachs: Buy calls on Citigroup now
Add Goldman Sachs to the list of research outfits that are bullish on Citigroup.
The firm's analysts have placed Citigroup on its "Conviction" buy list, as they boosted their 12-month price target to $49, suggesting a roughly 15 percent price increase is in the offing. What's more, the analysts think the appreciation could get started very soon. In fact, they recommend buying call options right now.
According to Bloomberg, the bank has told clients that they should buy calls on the stock before the bank announces fourth quarter results on January 17. The analysts have turned bullish on banks in general and Citigroup in particular, as Corbat's aggressive restructuring moves have hit the right now.
"Under new CEO Michael Corbat, we believe Citi is poised to improve returns and increase efficiency," according to the analysts' note.
"Citi shares are mispriced given the company's core earnings power, especially considering further restructuring could generate additional upside for shares."
In addition, the economy and consumer banking market seems to be on the mend. Banks have been generally bullish for some time, and the stock has rallied already from a local low of about $24 in early June.
- here's the article
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