Have Citigroup Shares Peaked?

Shares in Citigroup Inc. (C) have rebounded well in recent weeks, climbing about 40% since mid-March. The mini-turnaround has been largely thanks to some difficult measures that have eased the worst of the financial pressures on the bank. Citi CEO Vikram Pandit has ditched several business lines and assets, and reorganised others, and the price of Citi’s stock has responded accordingly.

But that run up in Citi shares could be over for now, says UBS Investment Research analyst Glenn Schorr. “We think Citi shares may have peaked for the time being,” Mr. Schorr says in a note. Ongoing capital markets pressures and other macro issues will limit any further rise in the valuation of the bank’s stock, he adds. Mr. Schorr has a “neutral” rating on Citigroup shares, with a $27.00 target price.

Comments

[LoveShorting]

I am short C so thanks for the positive news. My target? $12.

[Citibanker]

Nah, I see a spike in two weeks when Pandit starts selling the family jewels.