Citigroup: Hitting New Highs - Still Worth Chasing, Or Time To Cool Off?
Summary
- Citi’s turnaround has played out, with shares up 20% since January—easy upside is gone, so I’m moving to Hold from Buy.
- The risk/reward is now balanced; Citi must deliver sustained earnings growth and improved returns to justify a higher valuation.
- Citi still trades at a discount, but lags peers in ROE and margins—market wants proof of lasting profitability before rerating.
- I’d wait for a pullback or new catalyst before buying; at these levels, Citi is a ‘show me’ story, not a deep-value play.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.