UPDATE: Citigroup Upgrades Federal Investors to Buy on Removed Regulatory Risks

Citigroup raised its rating on Federal Investors

from Beutral to Buy and increased its price target from $22 to $25. Citigroup noted, "On 8/23, the SEC Chairman acknowledged the regulator does not have the necessary votes to bring forth proposals for further money market reform. This is clearly a major structural positive for money market players in particular, and moderate positive for Traditional Managers at large. Additionally, based on recent FOMC minutes, the likelihood of the Fed reducing excess reserve rates toward zero seems remote, adding a further tactical positive for money markets." Federal Investors closed at $21.51 on Thursday.