Citigroup’s Beaten-Down Shares Are Worth Buying, Mayo Says
- Valuations may reflect overblown fear of balance sheet hole
- Analyst sees bank’s shares rising about a third over next year
A Citibank branch in New York City.
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Citigroup Inc.’s $41 share price reflects too much fear, and investors looking for a long-term opportunity should buy the stock, according to Wells Fargo & Co. analyst Mike Mayo.
The Wall Street bank’s shares are trading at prices that imply its balance sheet could take a big hit from asset losses, analysts led by Mayo wrote. But that seems unlikely given the current strength of the company’s assets and its relatively high capital levels, the analysts wrote.