With Many Financials Out Of Favor, Northern Trust Corporation Upgraded By Citi

Following the Brexit vote, financials have been under excessive pressure as the future for Britain's trade relations and the European Union's future remains uncertain. As a result, many financials have been downgraded within the last few days.

Citi's Take

Despite the new trend in financials, Citi's Keith Horowitz upgraded Northern Trust Corporation (NASDAQ: NTRS) to Neutral from Sell, defending his $86.00 price target.

Banks have been down 12 percent since Brexit verses a 5 percent drop for the S&P 500. This large discrepancy has caused Horowitz to question the valuation of financials such as Northern Trust. The Citi analyst argued the relative decline to the S&P 500 was "a bit overdone with the group now trading at a 11.5 percent average implied cost of equity."

Related Link: How Much Have European Banks Lost In Market Cap Since The Brexit Vote?

The analyst also boasted his other Buy recommendations in the industry including Bank of America Corp (NYSE: BAC), Citizens Financial Group Inc (NYSE: CFG), KeyCorp (NYSE: KEY) and Goldman Sachs Group Inc (NYSE: GS).

At time of writing, Northern Trust Corporation traded at $62.34, up 1.09 percent Tuesday.