Hope you liked that profitable quarter Citigroup (C) reported last week. Almost immediately, folks started picking it apart, realising that it was a bunch of smoke and mirrors, with very little to show for it.
And since then, a host of analysts have come up with negative comments on the company. Not good for a bank that’s received an exceptional amount of assistance from the government, but which is definitionally too big to fail.
The latest to take a swing is Goldman Sachs analyst Richard Ramsden, who says credit losses continue to climb at an “alarming rate.”
Bloomberg: The results “included several one-time items which muddied the waters,” Ramsden wrote in the note. “The key question mark in our mind remains what Citi’s earnings power will be on the other side of the crisis.”
Citigroup rose to $3.69 in German trading today from Friday’s $3.65 close in New York. The shares have dropped 46 per cent this year, paring the bank’s market value to about $20.1 billion.
Ramsden halved his estimate for Citigroup’s 2009 loss to 25 cents per share, while keeping unchanged his forecast for 20 cents net income per share for 2010. He also introduced an estimate of 40 cents per share profit for 2011.
Ramsden has a price target of $1.50 on the stock.