Citigroup(C:NYSE) Barclay’s Goldberg cuts target on 2021 outlook reduction

STA Research
by: STA Research

Barclay’s analyst, Jason Goldberg cut his target on Citigroup to $63 from $78, however he maintained his Overweight rating on the stock. Goldberg cut his target based on his 2021 estimate reduction, stating that he expects an increase in expenditures offsetting profit.

STA Research has a average target of $70 on the stock, and a consensus Strong Buy.

Our current analysis of Citigroup is Slightly Bearish with a score of 3.3 out of 10, where 0 is very bearish and 10 very bullish.

 
What to like:
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 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.
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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