Citi removed from Wells' Priority list

|By:, SA News Editor

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."