Goldman Cuts Citigroup Target to $16, adds Stock to Conviction Sell List
A move by Goldman Sachs to downgrade the shares of Citigroup, Inc (C-NYSE) and slash the stock’s price target should reverberate through the market on Thursday.
And given the can of whoopass Goldman is opening, fresh 52-week lows would seem a lock:
Citigroup Inc., the New York-based bank that’s posted the biggest losses from the collapse of the U.S. mortgage market, may take an additional $8.9 billion in net writedowns in the second quarter, Goldman Sachs Group Inc. said in a research report.
The company is estimated to write down $7.1 billion of collateralized debt obligations and associated hedges, and $1.2 billion for other asset classes, Goldman said in a June 25 report. It may need to post a $600 million loss to reflect the mark-to- market value of its own structured note liabilities, Goldman said.
``We see multiple headwinds for Citigroup including additional writedowns, higher consumer provisions as a result of rapidly deteriorating consumer credit trends, and the potential for additional capital raises, dividend cuts or asset sales,’’ Goldman said in the report.
Goldman cut its six month price target for Citigroup to $16 and puts the New York-based investment bank on its ``conviction sell list.’’ Bloomberg
While Vikram Pandit is not toast yet, the dividend might be, and further capital raises are assured, according to Goldman.
Your move, Dick Bove.
Citigroup May Take Extra $8.9 Billion Writedowns, Goldman Says
Bloomberg
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