KBW defends Citi after downgrades

|By:, SA News Editor

Citigroup (C +0.9%) remains "a compelling investment on both an absolute and relative basis," says KBW's Fred Cannon, defending the name after it was dropped from Goldman's Conviction Buy list earlier this week, and Deutsche cut it to a Buy.

Cannon notes Citi is the only big-cap U.S. bank still trading below tangible book value, yet it has one of the strongest capital positions. He expects book to hit $65 during 2015, so if the stock can trade up to book, it's nice upside from today's $51.48.