In a somewhat puzzling review of Citigroup’s (C) Q1 report this morning, Standard & Poor’s financials analyst Matthew Albrecht reiterated a “Buy” rating on the stock and noted that the company blew away his EPS estimate for a 1-cent loss with 15 cents profit per share. However, he’s not budging on his $6 price target, even though his estimates are going up.
Albrecht raised his 2010 earnings estimate to 49 cents per share from a prior expectation for just break-even, and raised his 2011 estimate to 50 cents from 17 cents. But his price target is based on tangible book value, which, as Citi said today, was $4.09 in Q1.
Citigroup shares are currently up 16 cents, or 3.4%, at $4.72, one of few financials rising amidst Goldman Sachs’s (GS) travails.
In related news, Institutional Risk Analytics’s Chris Whalen went on CNBC earlier today to sing Citi’s praises, stating that “You�ve got to throw roses when it�s due and they�ve sold a lot of the business,” referring to the divestment of assets in Citi Holdings over several quarters. Whalen also remarked that he was somewhat cautious on JP Morgan Chase (JPM), stating that “this is the one I�m looking at in terms of catching up on reserves�they take a different posture.”
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