Nomura Initiates Coverage on Citigroup at Buy, $70.00 PT

In a report published Thursday, Nomura analyst Steven Chubak initiated coverage on Citigroup, Inc. C at Buy, with a $70.00 price target. According to the report, analysts see unparalleled ROE potential at C under the new capital rules, as Citicorp efficiency targets are realized by 2015E and Citi Holdings turns profitable. “We also see significant excess capital generation / best-in-class payout potential as the drag from Holdings moderates and DTA utilization accelerates,” the report said. Some highlights from the report included: -$70 TP implies +30% potential upside for the shares. -FY13E EPS at $4.6. -FY14E EPS at $5.05. C closed Wednesday at $55.17.