Goldman Sachs Says Citi Is 'On The Rise'

Goldman Sachs on Monday upgraded on Citigroup Inc C from Neutral to Buy, raising the price target from $57 to $61.

Citi’s shares were little changed in Monday’s session.

Analysts from Goldman Sachs see an alluring risk/reward situation given Citi’s current levels. They note the reasons for the upgrade:

• Citi can add to its first quarter results and even develop cleaner, continuous growing earnings.
• Citi predicts return on assets will increase by at least 90 basis points or higher by 2016.
• Accelerated wind-down of holdings.
• More aggressive capital payouts and capital deployment can help to offset the impact of deleveraging.

Citi’s stock price has increased nearly 14 percent over the past year.