UPDATE: Sterne Agee Upgrades Citigroup to Buy on Stabilized Risk Factors
Sterne Agee raised its rating on Citigroup (NYSE: C) from Neutral to Buy with a $50 price target.
Sterne Agee said, "The fourth quarter change in the CEO slot with the appointment of Michael Corbat is a game changer, in our view. The biggest risk at this point is the potential volatility tied to the Euro-zone—which appears to be stabilizing with the global liquidity stimulus and ongoing country-specific actions (Greek debt recently upgraded to B-/B from SD by S&P following a successful bond buyback). In addition, the shares could prove somewhat volatile over the next quarter or two, particularly as capital markets-related revenues are likely to remain uninspiring in the current environment given the persistent fiscal uncertainty emanating from Washington."
Citigroup closed at $41.25 on Wednesday.
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