Citigroup: Jefferies stays on 'buy', ups target
(CercleFinance.com) - In a note to the sector, Jefferies confirms its 'buy' recommendation and ups its target price from 76 to 82 dollars on Citigroup, one of its favourite picks among the larger caps.
The broker has integrated a 25bp rate cut to its models in July and expects negative EPS revisions based on the flatter curve, as well as varied market views on future Fed actions.
Outside the question of rates, Jefferies considers that the fundamentals for the sector remain positive, citing for example decent growth prospects for loans and solid credit quality, and believes that valuations remain attractive.
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The broker has integrated a 25bp rate cut to its models in July and expects negative EPS revisions based on the flatter curve, as well as varied market views on future Fed actions.
Outside the question of rates, Jefferies considers that the fundamentals for the sector remain positive, citing for example decent growth prospects for loans and solid credit quality, and believes that valuations remain attractive.
Copyright (c) 2019 CercleFinance.com. All rights reserved.