UPDATE: Citigroup Initiates Realogy Holdings at Neutral on Housing Recovery Timing Uncertainties

Citigroup initiated coverage on Realogy Holdings

with a Neutral rating and a $39 price target. Citigroup noted, "We believe the housing recovery will proceed onwards, but not without bumps along the way. Current uncertain mortgage banking industry reforms (e.g. QM/QRM/Basel III), including the way the Administration addresses the GSEs, and potential US economic pitfalls drive us to assess upside/downside valuation for the shares. Specifically, we estimate that if existing home sales/prices recover to mid-cycle in 2014, or a year earlier than we anticipate, we could see the stock approaching $47, and if it takes a year longer to recover (i.e. 2016 = mid-cycle), we could see fair value closer to $31" Realogy Holdings closed at $36.70 on Tuesday.