UPDATE: Sterne Agee Downgrades Citigroup to Neutral, Reiterates $33 PT

In a report published Monday, Sterne Agee Group downgraded its rating on Citigroup C from Buy to Neutral, but reiterated its $33.00 price target. Sterne Agee noted, “C shares have rallied 30% since the July lows, fueled by renewed optimism tied to the global economy and a meaningful global liquidity infusion. However, as the volatility in the Euro-zone continues, currencies are likely under increasing pressure, uncertainty tied to regulatory reform persists and the prospects for reserve release in Holdings diminish, we see increasing potential downside risk vs. a meaningful upside catalyst, at least in the near/intermediate term.” Citigroup closed on Friday at $32.72.