Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Analyst Actions: Citigroup, Cooper Industries


From Standard & Poor's Equity ResearchOPPENHEIMER RATES CITIGROUP UNDERPERFORM

Oppenheimer analyst Meredith Whitney sees Citigroup (C), as a stock trading under $5, as a speculative investment and appropriate for risk-tolerant investors.

Whitney estimates Citi's risky assets to be roughly $120 billion, but notes that the company has almost $600 billion in consumer and card loans. She says she's unclear exactly which assets are targeted in the $306 billion guarantee by the government.

She says clearly this will stabilize the group near term and the stocks this morning should reflect it. But she's still cautious on the potential future dilution from further prospective capital raises for the group and continued higher losses related to credit and asset deflation.

CITIGROUP CUTS ESTIMATES, TARGET FOR COOPER INDUSTRIES

Citigroup analyst Jeffrey Sprague says Cooper Industries (CBE) pre-announced that it would fall short of its previous fourth quarter EPS estimate of $0.83-$0.92.

Sprague notes that no new guidance was provided, but this looks like a major miss. He says CBE is seeing weakness in all lines of business, indicating that basically anything that can be deferred is being deferred. Notes halt in activity is so severe that CBE is closing many of its plants for the remainder of the year.

He cuts $3.62 2008 EPS estimate to $3.40, $3.45 for 2009 to $2.90, and $3.70 for 2010 to $3.25. He also cuts his $24 price target to $20. He keeps a sell opinion on the stock.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus