Citigroup: shares slip after downgrade

(CercleFinance.com) - Citigroup shares slipped on Thursday after Berenberg downgraded the US bank's rating by one notch, marking a further blow following last week's poorly received results.


Berenberg downgraded the Citi stock from "buy" to "hold" while raising its target price from 55 dollars to 70 dollars, citing valuation matters.

"We welcome Citigroup management's emerging strategy to simplify the group while retaining its global footprint," the broker said in a note to clients.

"However, following a 50% increase in Citigroup's share price during the past three months, we believe the likely costs of this transformation may be underappreciated," it added.

Citi shares were down 0.4% in early trading, underperforming the S&P 500 index, which was broadly unchanged.

Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.