UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Wells Fargo & Company

In a report published Monday, Citigroup reiterated its Neutral rating on Wells Fargo & Company

, and slightly raised its price target from $37.00 to $38.00. Citigroup noted, “We rate the shares of Wells Fargo Neutral. We see Wells Fargo as one of the better managed companies in the bank sector and the company should benefit from its strong mortgage origination and retail brokerage franchises, as well as further expense gains from optimizing the Wachovia franchise. Nevertheless, we remain on the sidelines with the stock given expected challenges to net interest margins in the anticipated prolonged low rate environment. Longer term, we see WFC's ROTE in the 18% range, so we see strong long-term value, but view current valuation as fair.” Wells Fargo & Company closed on Friday at $35.10.