Citi removed from Wells' Priority list


Concerns about the slow-motion meltdown in emerging markets have Wells Fargo removing Ciitgroup (C -0.4%) from its Priority List, but the team maintains an Outperform on the stock thanks to continued progress towards a 10%+ ROTCE by mid-2015, resilient (they've stopped tumbling) interest margins, and improved capital returns, not to mention an attractive valuation.

However, says analyst Matthew Burnell, emerging markets account for half of Citi's franchise. "While the individual impact of such potential events appears manageable, collectively they could present a material headwind to EPS in the near term."

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Comments (5)
  • bdubya13
    , contributor
    Comments (117) | Send Message
     
    Nice way if saying "train wreck" run for the hills!
    30 Jan 2014, 11:11 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11063) | Send Message
     
    $13.91 billion in net income

     

    Price to book value of 0.74

     

    Price to earnings growth ratio: 0.1353

     

    No, I think Citi is going to be just fine.
    30 Jan 2014, 12:26 PM Reply Like
  • Red Lion
    , contributor
    Comments (10) | Send Message
     
    Why would Wells Fargo remove Citi from its priority list at the precise time that investors should be accumulating C shares?
    30 Jan 2014, 10:54 PM Reply Like
  • rkaranjai
    , contributor
    Comments (2) | Send Message
     
    Underestimating the strength of the emerging market is where Goldman Sachs is wrong and the Viking Skagen is right.God bless
    31 Jan 2014, 01:08 AM Reply Like
  • wcchen1949@hotmail.com.
    , contributor
    Comments (2) | Send Message
     
    C:
    1) 2013 earnings 13.8 B, Q4: 2.6 B,strong balance sheet.
    2) 2014 funding plans.
    3) Basel III tier one common ratio of 10.5%, high quality liquid assets .
    4) P/E:10.48, EPS:4.42, Div & Yield: 0.04 (0.10%).
    4 Feb 2014, 08:47 AM Reply Like
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