UPDATE: ISI Group Reiterates Buy Rating, Raises PT on Citigroup on Raised EPS Estimates

In a report published Monday, ISI Group reiterated its Buy rating on Citigroup

, and raised its price target from $46.00 to $53.00. ISI Group noted, “The good news is we've had a Buy rating on C for quite a while. However, upon further analysis, we now think our EPS estimates were simply too conservative. Thus, we're raising our 2013-15 estimates significantly based on 3 main factors. First, following CEO Mike Corbat's recent investor presentation and a more in-depth assessment of C's cost cutting opportunities, we're accelerating our operating efficiency improvement outlook. Second, based on the U.S. economic and housing recoveries, we're increasing the pace at which Citi Holdings ought to be able to recapture some of its $11bn loan loss reserve. And finally, we think 2013 net interest income trends can remain fairly stable vs. levels in 3Q & 4Q12 (in the $12.0-$12.2bn range) whereas previously our forecast was modestly more conservative.” Citigroup closed on Friday at $46.68.