S&P Capital IQ Reiterates its BUY Rating on Citigroup, Target Price Reduced

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ reiterates his BUY rating on the shares of Citigroup Inc (NYSE: C), while adjusting the estimates for the company. The target price has been reduced from $50 to $40.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported its Q3 EPS ahead of the estimates and the consensus. The Q3 EPS stood at $0.84 after $1.9 billion credit valuation adjustment, loans fell 1.6% from Q2 and capital and credit quality ratios rose, the analyst says.The EPS estimate for 2011 is raised from $4.12 to $4.20 and the EPS estimate for 2012 has been reduced from $5.02 to $4.70, based on Q3 results and lower Q4 estimates. The analyst has reduced the target price but believes Citigroup’s Q3 results indicate that the bank is on track to grow capital and EPS for the forthcoming four quarters.