Citigroup(C:NYE) Morgan Stanley raises target to $61

STA Research
by: STA Research

Morgan Stanley’s analyst, Betsy Graseck  raised her target on Citigroup to $61 from $59, and maintains their Overweight rating on the stock.   Graseck is rated a 4-star analyst on TipRanks.

STA Research(stocktargetadvisor) has a average target of $79 on the stock, and a consensus Strong Buy rating. STA’s view of the stock is Slightly Bearish with a score of 4 out of 10, where 0 is very bearish and 10 very bullish.

What to like:
High dividend returns
The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Dividend Growth
This stock has shown top quartile dividend growth in the previous 5 years compared to its sector
What to not like:
Low market capitalization
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.
High volatility
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Highly leveraged
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and
management statements. Sometimes this is high because the company is trying to grow aggressively.
Negative cashflow
The company had negative total cash flow in the most recent four quarters.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector

 

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