Citigroup Inc. (NYSE: C), which has been decimated in the last 2 years by the financial crisis received some good news today.
The analysts at Keefe, Bruyette & Woods (KBW) raised their earning outlook for the firm. An increased earnings estimate may prove a boost for the stock in the near term, though they did announce this with some trepidation. KBW stated in their recommendation that although they are raising the earnings outlook, they do have some concerns on the bank’s pace of recovery.
While key competitors JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) have shown clear signs of righting the ship, the Citigroup behemoth has been slower to respond. A firm of over 300,000 employees cannot be nimble, or adapt quickly, which is what has stalled their growth comparatively.
Citing improving credit trends, the analysts increased Citigroup’s 2010 earnings estimate to 27 cents a share from just 7 cents a share. This estimate should be taken with some caution though, as financial regulatory reform continues to threaten the industry with higher capital requirements, and limiting bank fees.
KBW kept their rating on Citigroup at market perform with a price target of $4.70 a share. Similarly, Oppenheimer & Co. analysts maintained their outperform rating and $4.45-a-share price target on Citigroup.
