{"id":407039,"date":"2010-03-09T07:34:00","date_gmt":"2010-03-09T12:34:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:404929"},"modified":"2010-03-09T07:34:00","modified_gmt":"2010-03-09T12:34:00","slug":"citi-shareholder-survey-says","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/407039","title":{"rendered":"Citi shareholder survey says…"},"content":{"rendered":"

As shares of Citigroup Inc.<\/a> continue to strengthen, a recent investor survey suggests the stock remains under-owned.<\/p>\n

Deutsche Bank, which rates Citi a Buy with a US$5.50 price target, sent a list of questions out to clients on February 18. It received 83 responses showing that 49% don\u2019t own Citi. Of those who do, 38% are underweight. That means 68% don\u2019t own the stock or are underweight.<\/p>\n

Other than the government stake, the biggest near-term concerns cited were Citi Holdings (a unit that includes the Smith Barney brokerage and a variety of businesses and riskier assets that may be sold), low long-term earnings power and credit uncertainty.<\/p>\n

Citi raised capital in December and 40% of respondents bought at the time. Of those, 82% still hold the stock.<\/p>\n

As for what the Treasury should do with its stake, 28% believe it should sell as soon as the March 16 lockup expires, 26% believe the shares should be dripped into the market over time, and 11% believe the Treasury should hold out for a profit.<\/p>\n

Among survey respondent who plan to buy Citi share, 42% expect to sell another bank stock to do so. Of this group, 39% would sell Bank of America and 21% would sell J.P.Morgan.<\/p>\n

In terms of Citi\u2019s most favourable long-term attributes, a strong international franchise and related growth was cited by 59%. Its biggest weakness is considered to be a damaged brand, U.S. retail banking, Citi Holdings and an unclear strategy.<\/p>\n

In one year, most expect the stock will be in the low US$4 range. In five years, nearly half see Citi shares above US$7, while one third expect the stock to be between US$5 and US$7.<\/p>\n

Jonathan Ratner <\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

As shares of Citigroup Inc. continue to strengthen, a recent investor survey suggests the stock remains under-owned. Deutsche Bank, which rates Citi a Buy with a US$5.50 price target, sent a list of questions out to clients on February 18. It received 83 responses showing that 49% don\u2019t own Citi. Of those who do, 38% […]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-407039","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/407039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=407039"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/407039\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=407039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=407039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=407039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}