Citigroup Inc (C)
Report on 14.04.2022 banking
BUY - 50
TP - 58
SL - 47
The idea is more based on technical analysis. At present the price stands on the cross of two support lines and we can see oversold Stoch. Thats why i am waiting for at least a speculative bounce in the region of 58$.
Macroeconomic issues, such as raise of FED rate, inflation, recession risks, Ukreaine-Russia conflict, to mind mind are mostly priced in, as we have experienced 25% decline since last quarterly report.
Fundamentials on bank itself:
+ The bank is evaluated at 60% of its book value;
+ Dividends of 4% - the highest yield among top 5 US banks
+ Beating analysts' forecasts of 4 quarters in a row
- Increase of operational expenses
- Risks of closing business operations in Russia
Conclusion:
In the ideal scenario the idea will come true if tomorrow's quarterly report is stronger than expected. But in the same time You should be ready to hold the stock for a little while in mid or long term.
Report on 14.04.2022 banking
BUY - 50
TP - 58
SL - 47
The idea is more based on technical analysis. At present the price stands on the cross of two support lines and we can see oversold Stoch. Thats why i am waiting for at least a speculative bounce in the region of 58$.
Macroeconomic issues, such as raise of FED rate, inflation, recession risks, Ukreaine-Russia conflict, to mind mind are mostly priced in, as we have experienced 25% decline since last quarterly report.
Fundamentials on bank itself:
+ The bank is evaluated at 60% of its book value;
+ Dividends of 4% - the highest yield among top 5 US banks
+ Beating analysts' forecasts of 4 quarters in a row
- Increase of operational expenses
- Risks of closing business operations in Russia
Conclusion:
In the ideal scenario the idea will come true if tomorrow's quarterly report is stronger than expected. But in the same time You should be ready to hold the stock for a little while in mid or long term.