UPDATE: Citi Initiates Coverage on Vantiv

According to a research report published this morning, Citi has initiated Vantiv VNTV with a Neutral rating and $24 PT. In the report, Citi mentioned, "There is a lot we like about Vantiv (see "Investment Positives" below). However, VNTV's P/E multiple of 19.6x and EV/EBITDA of 12x our 2012 estimates (vs. the peer group average of 19x and 11x) seems to reflect these positives. The obvious questions are: Is a premium valuation warranted? If so, how much? How much upside is there to estimates? In our view, a modest premium is justified but we wouldn't reach for MA/V-type valuations here – in other words, the current valuation has little upside." Vantiv closed yesterday at $22.25.