UPDATE: Keefe, Bruyette & Woods Downgrades Citigroup Following 2014 CCAR Announcement

In a report published Thursday, Keefe, Bruyette & Woods analyst Frederick Cannon downgraded the rating on Citigroup C from Outperform to Market Perform, and lowered the price target from $58.00 to $52.00. In the report, Keefe, Bruyette & Woods noted, “Following today's 2014 CCAR announcement that the Fed objected to C's capital plan for qualitative reasons, it is now obvious to us that capital return to investors will not occur as soon as we expected, and we are moving to Market Perform from Outperform. We are lowering our price target to $52 from $58 and we believe that C's discounted valuation relative to peers is warranted based on the lack of capital return which will likely impair C's ability to meet stated return targets, increased risk associated with a global consumer footprint following the Mexico fraud losses, and expected downward pressure on consensus estimates.” Citigroup closed on Wednesday at $50.16.