Citigroup (C), has been a middle-of-the-road performer for the last year, with peers like U.S. Bancorp (USB), Wells Fargo (WFC), and Goldman Sachs (GS) underperforming and JPMorgan (JPM), PNC Financial (PNC), and Bank of America (BAC)
outperforming, and so too over the last three months as the sector has
sold off. Investors continue to remain skeptical about Citigroup’s
ability to hit its long-term targets and reverse a long trend of
lackluster, disappointing performance.
Citigroup has
earned those doubts, but I continue to believe the market is overdoing
it. Even low single-digit long-term growth would support a higher price,
and that is despite some actual ongoing signs of improvement. While
Citi is a long way away from being my favorite bank on a quality basis, I
think the relative valuation is still quite interesting.
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Citigroup's Valuation Masks Some Incremental Progress And Improvement
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