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Tags: analyst | Bove | Citigroup | leadership

Bove Rips Citigroup for Instability of Top Leadership

By    |   Wednesday, 23 April 2014 08:45 PM

Banking analyst Dick Bove of Rafferty Capital Markets is singularly unimpressed with Citigroup.

And it's not just because the Federal Reserve ruled against Citi's plan to raise its dividend this year. Bove is fed up with the frequent change of top leadership at the third largest U.S. bank.

"If people want to stop and think about this company over time, what you've had is six different CEO management teams running this company," he told CNBC. "Each one of them had a tenure of maybe three years."

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The bank would be well advised to keep current CEO Michael Corbat and Chairman Mike O'Neill in place for a while, Bove said.

"Whether they're great or not great, I don't know, but they better stay there," he said. "They better stay there for 10 years. They better articulate a single strategy and execute on that strategy, because that's something that Citigroup has not done for 20 years."

At the bottom line, Bove said he considers Citigroup "a very high-risk company."

Citigroup's stock has dropped 7.5 percent so far this year, but edged up 0.8 percent to end Wednesday at $48.40.

Morningstar analyst Jim Sinegal expressed some enthusiasm about Citi's first-quarter earnings. "The results were slightly better than our expectations, and we expect to modestly increase our $45 fair-value estimate to account for the improvements in core performance and the time value of money since our last update," he wrote on Morningstar.com.

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Banking analyst Dick Bove of Rafferty Capital Markets is fed up with the frequent change of top leadership at Citigroup.
analyst, Bove, Citigroup, leadership
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2014-45-23
Wednesday, 23 April 2014 08:45 PM
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