ISI Group Reiterates Buy, $44 PT on Citigroup

ISI Group maintains its Buy rating and $44 target price on Citigroup Inc. (NYSE: C) as EPS outlook for 2012-13 remains strong.

On non-recurring items negatively impacting EPS, ISI Group notes: “a $400mn restructuring charge to reduce headcount by approximately 4,500 people in 2012. $300mn DTA valuation reduction due to the adoption of a lower Japanese corporate tax rate. About $200mn of negative CVA charges based on tighter Citigroup debt spreads. About $300mn of net hedge losses due to tighter corporate bond spreads during 4Q.”

C closed at $29.75 per share on Tuesday.