Sterne Agee Notes Lack of Near-Term Catalysts for Citigroup, Downgrades to Neutral

In a report published Thursday, Sterne Agee analyst Todd Hagerman downgraded Citigroup Inc. C from Buy to Neutral and lowered the price target from $61.00 to $52.00. Hagerman noted a lack of catalyst to move shares of Citigroup higher, despite its inexpensive share price. The analyst commented on the company's recent capital plan failure, heightened regulatory risk, and a slow earnings growth which have kept Citigroup's value in check. Sterne Agee wrote that legal risk remains high for Citigroup and repositioning costs are likely to remain elevated in the near-term. The analyst added that the company has subdued prospects for meaningful capital return in 2015. Hagerman cut 2014 and 2015 EPS estimates to $4.50 and $5.30, respectively. Citigroup closed at $47.68 on Thursday, down 1.117%.