Tags: Bove | Citigroup | Stock | Double

Bove: Citigroup Stock Will Double in Price

By    |   Friday, 02 Apr 2010 08:18 AM

Citigroup’s performance is heading upward and that will help its stock price double over the next few years to $8.50, says star bank analyst Dick Bove of Rochdale Securities.

Citigroup stocks recently traded at about $4.18.

Bove says Citigroup CEO Vikram Pandit has done a superb job.

“We said from the day he stepped in that even though he might not have been a guy with a great commercial-bank background, he hasn’t made one mistake as head of Citi,” Bove told CNBC.

“Just about everything he’s done in terms of separating businesses to sell and businesses to keep, restructuring the company to be more decentralized, using capital in a different fashion, building a $195 billion cash position (has worked out well),” he said.

While Citi is likely to lose money in the first half of 2010, during the next few years it should earn 70 cents a share, Bove says.

Originally, Bove wanted to wait for the government to sell its 7.7 billion shares of Citi before he recommended that customers buy the stock.

But he now thinks that government sales won’t disturb the market much and should finish by October.

“So I would say yes, buy the stock.”

As for the government’s share sale, “What they are looking to do is to optimize taxpayer return while ensuring market stability,” Stephen Myrow, a former Treasury official who is now managing director at research firm ACG Analytics, told Bloomberg.

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Citigroup s performance is heading upward and that will help its stock price double over the next few years to $8.50, says star bank analyst Dick Bove of Rochdale Securities. Citigroup stocks recently traded at about $4.18. Bove says Citigroup CEO Vikram Pandit has done a...
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2010-18-02
Friday, 02 Apr 2010 08:18 AM
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