UPDATE: Morgan Stanley Upgrades Citigroup to Overweight on Return on Equity Potential
Morgan Stanley raised its rating on Citigroup (NYSE: C) from Equal-weight to Overweight and increased its price target from $45 to $51.
Morgan Stanley commented, "We think Citi's ROE can rise slightly to 7.6% in 2013 and 8.0-8.5% in 2014-15 vs 7.2% expected in 2012. Even with the slight ROE improvement, we see upside to the stock as the market is pricing in an ROE decline of 70 bp from the 6.9% generated in 3q12 which we view as unlikely. We hit 10% ROTCE in 2015."
Citigroup closed at $39.46 on Tuesday.
Latest Ratings for C
|Oct 2015||Morgan Stanley||Downgrades||Overweight||Equal-weight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.