Bove Predicts Long Term Growth For Citigroup, Bank Of America
August 26, 2010 2:53 PM
Industry analyst Dick Bove predicted long term growth for both Citigroup and Bank of America stocks.
During his interview on Zing Talk, Bove stated that Citigroup (NYSE:C) is the best capitalized of all the major U.S. banks. "It is now split into different group," he explains. "One is Citi Corp. which has earning power of $.70 a share and the other is Citi Holdings, which is a group of companies which Citi Corp. is trying to sell."
Bove went on to call Citigroup's stock cheap. "When these things are sold then Citi Holdings will be gone and you'll be left with a company with one of the best credit card businesses in the world, the best Fortune 500 financing business, and one of the best payment servicing systems internationally."
Bove also made predictions about the future of Bank of America (NYSE: BAC)
"The bottom line," explained Bove, "is that Bank of America is the best banking franchise in the world. They have the greatest number of customers on both the personal and business side. If you believe that the U.S. economy is going to grow then it would be almost impossible for Bank of America to not grow with it."
He went on to say that the stock is selling at a price lower than its earnings would suggest and stated that it should have solid long term growth potential.
