Reuters - Citigroup Inc. , the largest U.S. bank, may cut 15,000 jobs and take a charge of more than $1 billion to revitalize itself and boost a lagging share price, the Wall Street Journal said on Monday.
C is at 51.72, divergence is positive at 0.2045 after a little time in the negative region. It was unchanged last Friday, with only 7k volume. Average volume is at 3million. P/E is only at 12, but it may mean that the investors have lost confidence on the stock. Analysts put a buy recommendation to the stock (2.1 average, with 1 being strong buy, and 5 strong sell). Also, AG Edwards gave it a buy recommendation last March 20.
Earnings is a concern though. Hence, the cost cut. Growth is a concern (-1.8% versus the SP500's 4.2% and its sector's 8.0%). C's estimate of eps is down by $0.07 from 90 days ago, and is only at US$4.50.
Given this, and a P/E of 15, we are thinking that C may still trade at 62.50 tops. Given the jobs cut, and its proven resilience over time, C may still be a buy.
I will give it a 2.5 for a buy.
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